Monday, June 22, 2015

All Eyes on Greece Amid Hopes for Last-Minute Funding Deal




Talking Points:



  • Yen Drops, Aussie Dollar Higher as Greece Deal Hopes Boost Risk Appetite


  • All Eyes on Brussels as Eurozone Officials Meet for Last-Ditch Deal-Making


  • See Economic Releases Directly on Your Charts with the DailyFX News App


Tentative signs of progress toward an accord between Greece and its creditors fueled risk appetite at the start of the trading week. The Japanese Yen underperformed amid ebbing safe-haven demand while the sentiment-geared Australian Dollar pushed upward.



Athens submitted an updated set of proposed reforms to be carried out in exchange for unlocking the last tranche of funding in the country’s second bailout package, which is due to expire at the end of this month. The office of EU Commission President Jean-Claude Juncker called the overture “promising”, raising hopes that an 11th-hour compromise is taking shape.



All eyes now turn to a pair of emergency meetings in Brussels, the first among Eurozone finance ministers and the second among the currency bloc members’ heads of state. Traders await signs of a breakthrough paving the way for a deal or afinal breakdown without room to maneuver further.



Side-stepping “Grexit” is likely to boost the Euro and risk-geared FX (commodity currencies in particular) while weighing on the Yen and US Dollar. Needless to say, another disappointment stands to produce the opposite results.



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— Written by Ilya Spivak, Currency Strategist for DailyFX.com



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All Eyes on Greece Amid Hopes for Last-Minute Funding Deal

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