GREEK PARLIAMENT VOTES TO ACCEPT BAILOUT BUT…
Technically, the Greek parliament missed its deadline to vote through the changes necessary to meet the onerous demands of the current bailout offer. However, after a painful parliamentary session, at some minutes past midnight (the theoretical deadline) Greek MPs voted in favour of the ‘prior actions’.
During the pre-vote session Greek PM Alexis Tsipras effectively had to admit that the Greek state was now back to where they started -before the last wave of riots, before Syriza took power and before the, now seemingly pointless, referendum. No wonder there are scenes of violence on the streets of Athens.
You might think that given this drama and the focus on its ‘positive’ outcome, the Euro would strengthen. However we enter this morning’s trading with 12-month lows for EUR and a good chance we will see multi-year lows as further news greets market participants. It is as if traders are bored of this merry go round and are focusing on the harsh realities…Greece still does not have the cash to pay its bills.
Elsewhere USD found strength after the Fed Chair Yellen indicated a US interest rate rise could be seen this year. The USD strength is difficult to see in GBP/USD as GBP itself has had a buoyant few days. Yellen is in fact ‘testifying’ (just speaking, really) later today so we may well see another boost for USD late afternoon as traders pay close attention to the rhetoric. Since taking the seat market movements/adjustments have been dictated by even the slightest alteration in the language she uses.
Overnight we have had Consumer Price Data from New Zealand. Showing an unexpected fall to 0.3%, the data caused a further fall in NZD with GBP/NZD testing the 2.40 mark, levels last seen in early 2010.
Later today we also have the ECB’s rate decision, in itself something that would normally dominate market talk. It will be the post decision conference that is of interest with questions no doubt focussing on Greece, Grexit, temporary Grexit, Getoverit and so on.