So, it looks like we may be arriving at some sort of conclusion with the Greek and Eurogroup talks. Markets swung wildly on the back of rumours yesterday and at the end of the day we saw Sterling start climbing.
In a major development European Council President Donald Tusk introduced the word “Graccident” to the English language as he explained how successful meetings were necessary to avoid such a (Gr)eventuality of a Grexit. Whilst nothing was actually (Gr)agreed there certainly appears to be more (Gr)optimism as both sides appear to have settled on the principles of the Greek debt programme. Although capital controls and debt relief were not discussed, yesterday’s proposals represent a major step with both sides hopeful that a deal although not yet signed off will only be a matter of time.
Indeed, all fingers are pointing to the matter being signed off by Thursday when Euro leaders hold their next summit. The run on Greek banks also looks to be coming to an end as the Greek banking system was given a vote of confidence by Mario Draghi.
In other news, it has been confirmed by the Royal Bank of Australia that interest rate cuts are working as the Australian Dollar has weakened significantly and we should see further depreciation.
Along with further news of the Gragreement, main data out today is from the US with Durable Goods Orders and New Home Sales figures being released this afternoon.