EURUSD found support after the announcement that Greece will receive a €130 billion rescue deal, but it failed to stage a decent rally amid concerns it might need further financing. Indeed, a leaked “strictly confidential” report prepared for eurozone finance ministers revealed that Athens’ rescue programme was way off track and it might need another bailout once a second was agreed.
“While the upwards move in the EUR describes relief that Greece has avoided a messy default next month, the lack of euphoria in the markets on the news aptly reflects the perception that while Greece has overcome one hurdle, the country’s troubles will continue to play out for years,” says Jane Foley, currency strategist at Rabobank.
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