Talking Points:
• Greece and its creditors marked critical progress in a tentative deal this past weekend
• With another threat to global stability moderating - alongside China's stability - global stocks took higher
• Refrain from the euro may not be the only skepticism that has become ingrained in the financial system...
Building on the positive turn for the global financial system starting with Chinese market stability, the tentative agreement for further Greek support further drove global equity markets higher. Yet, the same optimism experienced by these general sentiment benchmarks wouldn't show through for the euro itself. If the currency that is most directly influenced by this development can't muster a positive response, what does that mean of outcome itself? What does it mean for something like general 'risk appetite' which tends to dilute such headlines' influence quickly? The market has given us good reason to doubt the progress we should expect following the rebound in equities and the euro's ultimate response to the most recent rescue for Greece. Meanwhile, other fundamental themes and backseat currencies may prove more volatile and productive with upcoming event risk. The dollar is gaining traction as rate speculation is revived, the pound is facing distinct event risk known for stirring volatility and China's 2Q GDP reading is an important milestone for global growth. We discuss these forthcoming events' market potential in today's Trading Video.
