Another episode of the Greek drama – DB

FXStreet (Edinburgh) - Analyst Jim Reid at Deutsche Bank reviews the recent development in the Greek front.

Key Quotes

“Whether Greece will get some of this ample global liquidity over the next week or so is no nearer to being decided and yesterday saw a fairly big positive reaction to headlines from the Greeks that they think progress has been made in discussions and that an accord was being drafted. Although these headlines were soon countered by EU officials saying no real progress had been made, the market chose to accentuate the positives”.

“The report suggested that the agreement would envisage low primary budget surpluses, no recessionary measures, a sales tax overhaul and medium term agreement on debt relief”.

“Greek PM Tsipras fuelled hope that there was some credibility in the headlines saying that a deal is close, however the comments out of the European side as mentioned were in stark contrast”.