Greece finally gets the deal with its creditors this morning after painful 6 months. However, the question is if this was a better deal for Greece, which was presented to them when they walked off with referendum threat. The answer is certainly no. This is nothing, but a pure embarrassment for Mr Tsipras who made his people suffer for 6 months. The country’s economic situation is even worse and the deal, which they have is not looking rosy either, as compared to previous one, but nonetheless, the EU officials have given a strong message to other countries how they treat. Mr Tsipras future is certainly hanging by a thread now and there is a strong possibility that he may have to call a day for his appalling service, which he has provided.
Yet, at least we have a deal and this means that we can move forward now. All eyes will be focused towards the ECB upcoming meeting, which is due on Thursday and this is causing a little sell off for the euro. The ECB will have to rethink about its ELA and there is strong possibility that they bank may have to address the liquidity issues in the Eurozone as well as its purchase for the past few months have been weaker and pumped less money than expected.
The Euro dollar has briefly broken its upward trend line which is a sign of weakness. The volatility is extremely high as it has pierced the Bollinger band and it is more likely that their downward trend could continue for some time, because the momentum indicators are backing them.
Important zones
1.0963-1.0944 Minor
1.0902-1.0885 Major
1.1258-1.1288 Minor
1.1535-1.1411 Major
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam