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Eurozone finance ministers have finally struck a deal on granting Greece a second bailout worth €130bn, with the aim of cutting the country’s debt to GDP to 121% by 2020. The news had been priced in over recent sessions to a large extent and the euro failed to sustain any major rally.
Today’s session will inevitably be spent mulling over and analysing the various details of the bailout but it seems that the euro may have made its gains already and we could see another example of ‘buy the rumour, sell the fact’ this week.
STERLING/EURO: This pair came under pressure yesterday as markets priced in the bailout, but the downside was limited.
STERLING/US DOLLAR: Sterling remains well supported against a weaker USD but it may struggle to climb much further now.
EURO/US DOLLAR: The euro is trading fairly well but hasn’t breached early February’s high of $1.33 despite the Greek bailout grant.
STERLING/AUSTRALIAN DOLLAR: Sterling actually recouped ground against the aussie dollar regardless of the (superficially) positive Greek bailout headline.
STERLING/NEW ZEALAND DOLLAR: This pair was fairly range-bound despite slightly softer kiwi inflation data.
STERLING/CANADIAN DOLLAR: With the Greek deal already priced in, this pair was unmoved by the overnight bailout headlines.
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