Subscribe to our RSS Feed
Follow FxPro on Twitter
Join us on Facebook
Visit our YouTube Page
Visit our G+ page
Optimism that yesterday’s lengthy meetings in Athens produced the outline of a deal has provided the single currency with some fresh impetus overnight, the euro reaching a two-month high above 1.33. According to a Greek aide who spoke to the Guardian, Greek Finance Minister Venizelos would have the “finalised text of the agreement in his hands” by the time he boarded a plane this morning headed for a Eurogroup meeting in Brussels. Prime Minister Papademos claimed that the major political parties and the troika had thrashed out their differences in all areas except for supplementary pensions. For example, Greek politicians have apparently agreed to the 22% reduction in the minimum wage demanded by the troika.
Those of a more sceptical disposition would observe that we have heard all of this hyperbole many times before. If there really is a deal, the troika has thus far been remarkably mute. Right at this moment the clock is still ticking and there is little clarity. Even if there was the latter, it is not remotely clear that Greek politicians could ever deliver on any agreement, based on the evidence of the past couple of years.
If the euro really is rising on expectations of a binding Greek deal, then in our view this represents a real triumph of hope over experience.
