THE GREEKS SEEM TO HAVE DONE IT!
The seesaw motion continues with the GBPUSD opening this week to push back again, reclaiming the values of early last week. In fairly tempered trading the GBP started to find strength mid-morning and pressed heavily during the day, finally easing at around 17:00 GMT. The story for the GBPEUR wasn’t quite as convincing, with only mild gains enjoyed until close.
More news from China comes in the form of a central bank depreciation of its currency. The move is touted as a one-off depreciation and amounted to just about 2 percent. The talk from the Central Bank was that it was based on a new way of managing the exchange rate that better reflected market forces. The Australian Dollar took a real hit to strength as investors sold this in a proxy to the Chinese currency. The measure itself can be said to have unsettling effects on the view of the Chinese economy, even though they will likely receive support to exports which they could really use.
Greece has done it. They have finally agreed a deal in talks with lenders that lasted through the night. Maybe they will receive a tranche of funding before the next due instalment in a few days. The announcement said that an agreement has been reached and only minor details remained to be discussed. The value of the bailout could be in the region of 86 billion EUR. 3.2 billion EUR debt payments are due on the 20th August, so it couldn’t have come a moment too soon.
Again, a day which isn’t too heavy on economic data. The Eurozone Economic Sentiment survey is due this morning, which is hoped to produce a slight improvement of overall feeling for the strength of their economies. The US will release some jobs data but nothing particularly vital. Lastly we will view the Bank of Japan Monetary Policy meeting minutes and some goods price measure for them too.