A messy compromise for Greece

25 May, 2016

GreeceВ creditors reached a deal to avoid a summer car crash in a way that only they know how, involving extension of maturities, adjustment of interest rate payments with a good dose of things still to be decided, some of them after the German federal elections next year. The often used headline in recent years was “kicking the can down the road” and for the most part, this amounts to another example of that. The IMF remains involved, but retains its demand for meaningful debt restructuring. Still, for the single currency, this has removed one of the potential risks for the summer, with the deal unusually being reached comfortably ahead of the loan disbursement next month.

Yesterday saw a sharp move lower on EURGBP, pushing 3.5 month lows as the single currency was favoured vs. the dollar by yen bulls. On the other side, sterling is gaining more confidence that the EU referendum will see a win for the ‘remain’ side next month. The Bank of England Governor had a charged appearance in front of the Treasury Select Committee yesterday largely focusing on the issue. Sterling is again, so far, the strongest performing major currency this week. For today, there may be a stronger focus than usual on the German IFO data at 08:00 GMT, with yesterday’s GDP data showing a better than expected balance of growth for Germany. The market expects a modest rise in the headline index. The yen remains cautiously optimistic going into the G7 meeting this coming weekend, USDJPY struggling for a sustained push above the 110 level.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or