Daily Market Analysis by FxGrow - page 3
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Daily Market Analysis – 30th June, 2015
By FxGrow Research & Analysis Team
Greece expected to Default on Its Payment to the IMF today
Greece is expected to default on its payment of €1.6bn to the IMF today. The 5 year Greece bailout program will come to an end today by 6pm Washington time.
Meanwhile Greek banks remain closed as Greece is almost out of money after the European Central Bank turned down a request from the Bank of Greece for €6bn in emergency funds.
Greece has threatened to seek a court injunction against the EU institutions, both to block the country's expulsion from the euro and to halt asphyxiation of the banking system - Telegraph.
“The Greek government will make use of all our legal rights. We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable" - Greek Finance minister, Yanis Varoufakis.
Greek PM Alexis Tsipras has called the referendum over the weekend on July 5, as Euro hits a 7 year low against the British pound.
“The greater the number of no [votes], the greater the weapon the government will have to relaunch negotiations. Greece never left the negotiating table, it is still at the negotiating table” - Greek prime minister, Alexis Tsipras.
“I do see the potential for disruptions that could affect the European economic outlook and global financial markets. To the extent that there are impacts on the euro-area economy or on global financial markets, there would undoubtedly be spillovers to the United States that would affect our outlook as well” - Federal Reserve Chair Janet Yellen.
Greek Prime Minister Alexis Tsipras has urged voters to reject the demands of its European creditors.
"We ask you to reject it with all the might of your soul, with the greatest margin possible. The greater the participation and the rejection of this deal, the greater the possibility will be to restart the negotiations to set a course of logic and sustainability" - Greek PM.
Greek Banks remain closed with capital controls in place so that customers can only withdraw a maximum of 60 euros in a day. After ECB refused further funding Greek banks had no choice.
Greece has to repay 1.6billion euros to the IMF today and is likely to default on its payment today. Greece owes 3.5 billion euros to the ECB on July20. The current Greek bailout financed by ECB, IMF and the European Commission also expires today.
Crude Oil is trading lower at $58.86 on Greek default concerns.
Gold is trading lower in the Europe at 1173.79, while Silver is weak at 15.72
30th June 2015 – 10:47hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 01st July, 2015
By FxGrow Research & Analysis Team
Greece defaults on $1.7 billion IMF payment
Greece has defaulted on its payment to the IMF on June 30 and became the first developed nation to do so. Greece is now into a deeper recession as its bailout program has expired and now it is cut off from the access to IMF resources. International Monetary Fund in an organization that helps the world economy remains stable.
"I confirm that the about EUR 1.5 billion due by Greece to the IMF June 30 has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared" - Director of Communications, IMF.
The ECB's policymaking governing council was to meet in Frankfurt to decide whether to maintain, increase or curtail emergency lending that is keeping Greek banks afloat despite a wave of deposit withdrawals and the state's default. - Reuters.
"Greece was fully committed to service its external debt in a manner that secures the viability of the Greek economy, growth and social cohesion" - Greek Finance Minister Yanis Varoufakis.
Greece has received nearly 240 billion euros in two bailouts from the European Union and IMF since the start of the program in 2010.
"What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible" - Spanish Prime Minister Mariano Rajoy.
"Before the planned referendum is carried out, we will not negotiate over anything new" - German Chancellor Angela Merkel.
The risks of a default to the IMF forced European Central Bank to limit its emergency loans to Greek banks and Greece’s government was forced to institute capital controls in order to prevent mass exodus of cash out of the country.
"I think Mr. Tsipras screwed up the negotiations, frankly. Because he believed that Europe needs Greece as much as Greece needs Europe, and that is sadly not the case. So now I believe he's in a state of panic because the banks have closed, people are complaining, they were queuing for hours over the weekend to get their cash out" - Miranda Xafa, Centre for International Governance Innovation.
Crude Oil is trading lower at $58.89 on uncertainty about the financial crisis in Greece.
Gold is trading lower in the Europe at 1171.60, while Silver is weak 15.57
01st July 2015 – 09:09hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 02nd July, 2015
By FxGrow Research & Analysis Team
US ISM Manufacturing Index Rises to 53.5 in June
Manufacturing expanded in June as the PMI registered 53.5 percent, an increase of 0.7 percentage point over the May reading of 52.8 percent, indicating growth in manufacturing for the 30th consecutive month. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting - Institute for Supply Management.
Improvement seen in US manufacturing reflects stronger domestic spending with improving demand abroad. 11 out of 18 manufacturing industries expanded in June, led by makers of furniture and wood products. Producers of oil, metals, plastics and machinery said business contracted.
New orders rose to 56.0 from 55.8. The gauge of prices paid was unchanged at 49.5, compared with expectations of 51.0. June PMI indicates manufacturing activity has begun to recover from the softer demand, output and hiring levels experienced earlier in the year.
Globally falling oil prices have forced energy companies to curtail orders for new equipment and pipelines as their margins were squeezed and rigs were shut down. The stronger dollar made US goods more expensive overseas, which is weighing on sales.
In Eurozone finance ministers have ruled out any further talks on a fresh bailout for Greece until the country holds its referendum on Sunday.
Greek PM Tsipras has written to European leaders and the International Monetary Fund, accepting most of the conditions for the bailout.
"Greece is prepared to accept this staff level agreement subject to the following amendments, additions or clarifications" - Prime Minister Alexis Tsipras.
Greece is out of money after being cut off from European bailout funds and has defaulted to the IMF. If Greeks will vote for "Yes" a new bailout deal will take weeks and may need a change of government.
"How do you persuade European government to vote for a third bailout when the Greek government has actively campaigned in a referendum against the terms of a second bailout?" - James Nixon.
NZDUSD slid to a 5 year low as the monetary policy divergence New Zealand and the US and the strong US dollar are driving the New Zealand dollar to its lowest since May 2010.
Crude Oil is trading lower at $57.11 after progress on Iran Nuclear deal.
Gold is trading lower in the Europe at 1163.70, while Silver is weak 15.52
02nd July 2015 – 07:48hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 03rd July, 2015
By FxGrow Research & Analysis Team
US Non-Farm Payrolls increased by 223k in June
Total nonfarm payroll employment increased by 223,000 in June, and the unemployment rate declined to 5.3 percent. Job gains occurred in professional and business services, health care, retail trade, financial activities, and in transportation and warehousing - US Bureau of Labor Statistics.
Employment in other major industries, including construction, manufacturing, wholesale trade, information, and government, showed little or no change over the month - US Bureau of Labor Statistics.
The unemployment rate declined to 5.3% due to a decline in the labor force of 432K as the participation rated declined to 62.6% from 62.9%.
Recent US data suggests that US growth should pick up in the current and coming quarters. The June employment report leaves the door open for a first rate hike in September. The uncertain financial conditions in Greece may affect the timing of the first rate hike.
US Dollar was weaker after the Non-Farm payrolls came out, seen as mildly disappointing by the economists. While the expectations for two rate hikes before the end of the year are cut down, the expectations of a September hike are maintained.
With US holiday on Friday NFP data was released a day earlier, and we are unlikely to see major moves until the opening of the markets on Monday.
Focus is now shifting to Greece as Prime Minister Alexis Tsipras has called a referendum on July 5 for Greeks to decide if the country should accept what his government regards as a raw deal offered by its creditors.
On Monday, a larger than usual price gap between the market's close on Friday and the open of the Asian markets is expected.
If the majority of Greeks will vote against the current deal drafted by the IMF, European Commission, and the European Central Bank, it will push the country closer to Grexit.
Meanwhile, European leaders are not ready to negotiate with Athens until the referendum has passed. According to some reports Germany might refuse to negotiate with Greek government post-referendum.
In UK business activity in the services sector outpaced estimates for the month of June. Markit services purchasing managers' index came at 58 for June.
"In UK Growth is looking increasingly unbalanced. The recent weakness of the manufacturing PMI means industrial production looks likely to have declined in the second quarter, leaving the economy once again dependent on the service sector to sustain any growth. June’s rebound is therefore welcome news, but policymakers will want to see further improvements in the data, including signs of a sustainable upturn in pay growth, before feeling comfortable that the UK economy is ready for higher interest rates" - Chris Williamson, chief economist at Markit.
Crude Oil is trading lower at $56.52 7.11 after US oil drilling this week increased after 29 weeks of declines.
Gold is trading mildly higher in the Europe at 1168.70, while Silver is weak 15.65
03rd July 2015 – 08:55hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 06th July, 2015
By FxGrow Research & Analysis Team
Global Markets sink after Greek voters rejected the terms of an International bailout
The final result of the Greek referendum, was 61.3% "No", against 38.7% who voted "Yes".
Global markets have sunk after voters in Greece rejected austerity plans demanded by International creditors, as the country's future in the Eurozone is in danger.
The Nikkei 225 index dropped 2.1% to close at 20,112.12 on Monday. In South Korea, the Kospi index fell 2.4% to 2,054. And in Hong Kong, the Hang Seng index was down 3.3% to 25,205.56.
“As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country" - Greek Prime Minister Alexis Tsipras.
"Today we celebrate the victory of democracy. We proved even in the most difficult circumstances that democracy won't be blackmailed" - Greek Prime Minister Alexis Tsipras.
“I’m fully aware that the mandate that I was given (by voters) is not for a rupture with Europe, but a mandate boosting our negotiating strength for reaching a sustainable deal" - Greek Prime Minister Alexis Tsipras.
"For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities" - Jeroen Dijsselbloem, head of the Eurozone finance ministers.
"I believe that with the hard efforts of all sides, Greece's economic situation will turn around. The economic crisis will be appropriately handled. Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too" - Deputy Chinese Foreign Minister.
If there is no agreement on a deal, the European Central Bank will shut down Emergency Liquidity Assistance no later than 20 July. Banks will then not only be illiquid but would then turn bankrupt, and the lack of financing would trigger a collapse of the Greek economy.
“Euro area member states intend to make full use of all the instruments available to preserve the integrity and stability of the euro area (which would) complement any actions the European Central Bank may take in full independence and in line with its mandate” - ECB.
US stocks are poised to open sharply lower on Monday after Greeks rejected the terms of the bailout proposed by its International creditors.
Crude Oil is trading lower at $54.95 8.86 after Greece rejected debt bailout terms.
Gold is trading lower in the Europe at 1164.88, while Silver is flat at 15.62
06th July 2015 – 08:32hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 07th July, 2015
By FxGrow Research & Analysis Team
Greek debt crisis: Eurozone struggles to find solution
Eurozone leaders are meeting for an emergency summit in Brussels today to find a solution to the Greek debt crisis after Greece’s landslide rejection of bailout proposals. They are awaiting a new proposal from Greece after its Finance Minister Yanis Varoufakis announced his resignation.
“The prospects of a happy resolution of this crisis are rapidly diminishing. If there is no signal from these meetings that Greece and the Eurozone are ready to get around the table again, we can expect the financial situation in Greece to deteriorate rapidly" - George Osborne, British chancellor.
“Greece is a member of the euro. It is up to Greece and its government to act so that this can remain the case. It depends now on what proposals the Greek government puts on the table" - spokesman of Angela Merkel, the German chancellor.
Global leaders have expressed concerns about the ongoing Greek debt crisis and are looking for an amicable solution.
"It is now up to the government of Alexis Tsipras to make serious, credible proposals so that this willingness to stay in the Eurozone can translate into a lasting programme. Time is running out and there is urgency for Greece and the Eurozone" - French President Francois Hollande.
"Washington looked forward to Athens and other parties resuming conversations toward resolving the Greek situation. Such an outcome will allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the Euro zone" - Jack Lew, US Treasury Secretary.
"I understand why the Greek people are venting their frustration. Fiscal consolidation is not making progress. They are in deflation. The world expects Greece and the EU to cooperate on a final bailout plan" - Akira Amari, Japan's Economics minister.
Greek Banks will run out of cash by next week as large parts of the Greek economy are hit by the imposed capital controls and closure of Banks.
Greek government is also running out of cash to pay public service wages and pensions to its citizens. The country is just days away from deciding whether to leave the Eurozone, if there is no financial support from the European Central Bank.
In UK Manufacturing production dropped 0.6 percent for the month of May, while Industrial production rose by 0.4 percent.
The Reserve Bank of Australia kept its Official Cash Rate unchanged at 2.00%.
"In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending." - Reserve Bank of Australia.
US Non-Manufacturing PMI came in at 56 for the month of June according to the Institute for Supply Management.
Canada's Purchasing activity rose for the month of June as Ivey PMI came in at 55.9.
"On the other hand, domestic demand is strengthening in regions that are less exposed to the energy sector" - Bank of Canada.
Crude oil plunged to $53.13 on concerns of Greek exit and persistent oversupply in the market.
Gold is trading lower in the Europe at 1166.39, while Silver is weak at 15.64
07th July 2015 – 09:43hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 08th July, 2015
By FxGrow Research & Analysis Team
Chinese stock market crash continues
China’s stock market crashed as the government announced more measures to try to boost the sagging market after a spectacular bull-run reversed course in June.
The Shanghai Composite Index has lost about €2.9 trillion in value in the crash, which is nearly 12 times Greece’s entire foreign debt, which is estimated at €242.8 billion, and more than 12 times its gross domestic product (GDP) which is reckoned at about €238 billion last year.
"At the moment there is a mood of panic in the market and a large increase in irrational dumping of shares, causing a strain of liquidity in the stock market" - China Securities Regulatory Commission.
"Also, the ripple effect from the market correction has yet to show up. We expect slower growth, poorer corporate earnings, and a higher risk of a financial crisis" - Analyst of Bank of America Merrill Lynch.
More than 1,300 companies representing about 40 percent of the value of companies in China have halted trading in an effort to stop the slide.
More than 500 China-listed firms announced trading halts on the Shanghai and Shenzhen exchanges on Wednesday, taking total suspensions to about 1,300 - 45 percent of the market or roughly $2.4 trillion worth of stock - as companies scuttled to sit out the carnage – Reuters.
“Fears about the risks to financial stability and the wider economy have contributed to negative sentiment toward commodities. The impact has been felt most in industrial metals, such as copper, where China is by far the most important consumer" - Analyst from Capital Economics.
In Eurozone, after the emergency summit in Brussels, European leaders have given Greece time until Thursday to present new proposals to secure a deal with creditors, and have called a full EU summit for Sunday.
"If this does not happen, it will mean an end of the negotiations with all the possible consequences, including the worst-case scenario, where all of us will lose. Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system. Tonight I have to say loud and clear that the final deadline ends this week" - European Council President Donald Tusk.
"The Commission does not want a Grexit. Grexit would be a terrible failure and we are fighting to avoid it." - Pierre Moscovici.
Canada's Trade deficit increased to C$3.3 billion deficit, while the volume of exports plunged 2.5% in May.
"On the other hand, domestic demand is strengthening in regions that are less exposed to the energy sector" - Bank of Canada.
Crude oil plunged to $52.37 on China stock market turmoil ahead of weekly supply data from US.
Gold is trading lower in the Europe at 1153.89, while Silver is weak at 15.01
08th July 2015 – 09:38hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 09th July, 2015
By FxGrow Research & Analysis Team
FOMC Minutes: Fed Cautious over weak Consumer spending, Risks in Greece and China
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced.” – FOMC.
"Many participants emphasized that, in order to determine that the criteria for beginning policy normalization had been met, they would need additional information indicating that economic growth was strengthening, that labor market conditions were continuing to improve, and that inflation was moving back toward the Committee's objective." – FOMC.
"Most participants judged that the conditions for policy firming had not yet been achieved; a number of them cautioned against a premature decision" – FOMC.
The FOMC minutes show that officials are cautious about the economic outlook. Their concerns include weak consumer spending, and drags on investment and exports resulting from lower energy prices and a stronger USD.
Concern over Greece and China, Fed officials were open to delaying their first interest rate increase since 2006 amid uncertainty over Greece’s future in the euro zone.
"While a worst-case scenario of a Greek exit from the euro leading to sizable financial and economic impacts on the global economy cannot be ruled out, it remains an unlikely tail risk" - San Francisco Fed President Williams.
In China, Stock markets have stabilized with the Shanghai Composite up 6.35% and the Shenzhen Composite up 3.76%. With support from the Chinese government to rescue stock markets, the People's Bank of China has cut interest rates to a record low; brokerages have committed to buy billions worth of stocks.
The Greek government sent a formal request for a new bailout to the European Stability Mechanism, asking for a three-year loan facility.
Greece has said it will provide details of credible and concrete reforms to its creditors today to try to secure a third bailout from the European Union and the International Monetary Fund.
Canada’s Building permits declined to C$6.7 billion for the month of May, showing signs that the Canadian economy struggled to regain momentum after shrinking in the first quarter of the 2015.
Crude oil is trading lower at $52.44 after a surprise build in US stockpiles.
Gold is trading higher in the Europe at 1164.45, while Silver is up at 15.39
09th July 2015 – 09:04hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 10th July, 2015
By FxGrow Research & Analysis Team
Euro Higher as Greece submits new Bailout Proposal
Greece has submitted a new detailed proposal to its European creditors asking for a three year bailout loan. The chairman of Euro group finance ministers, Jeroen Dijsselbloem, received the documents which will be assessed by the officials from the European Commission, European Central Bank and International Monetary Fund.
"We got a mandate to bring a better deal than the ultimatum that the Euro group gave us, but certainly not given a mandate to take Greece out of the Eurozone. We are confronted with crucial decisions, we are all in this together" - Greek Prime Minister Alexis Tsipras.
Greek PM Alexis Tsipras has taken care to draft a new proposal along with his cabinet which proposes tax rises, pension reforms meeting the demands of the creditors. The new proposal is due to be approved by the Greek Parliament today and will be presented before the Euro group of Finance minister's summit on Sunday.
EURUSD is lifted by the news that Greece has submitted a new proposal for bailout from a low of 1.0991 to trade at 1.1118 in the European trading session.
“The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors. Only then will we have a win-win situation” - European Council President Donald Tusk.
European Union leaders will be meeting for an emergency summit in Brussels on Sunday where they will decide on the future of the Greece in the Euro. If there is no deal by Sunday then the Greek economy will collapse and possibly leave the Euro.
“Greece seeks to reach an agreement with the institutions immediately, but we want an agreement that will respect the country and the people’s dignity, and that will open windows for a way out of the crisis. We do not want to add a third Memorandum of harsh austerity, suffering and deprivation to the two previous ones without offering a prospect to the country" - Greek Energy Minister.
The future of Greece in the Eurozone will be decided this weekend when the European leaders will discuss a third bailout program in the light of new proposal submitted to them.
US Initial Jobless Claims jumped to 297K, as the number of people applying for unemployment benefits rose more than expected last week.
Bank of England has kept its benchmark interest rate unchanged at 0.5% on backdrop of strong growth. IMF expects British economy to grow 2.7% this year.
In Australia Unemployment rate rose to 6.0% for the month of June according to the Australian Bureau of Statistics.
China’s Consumer Inflation rose to 1.4% for the month of June according to the National Bureau of Statistics.
Crude oil has rebounded to $53.26 as China stock markets have recovered from collapse.
Gold is trading higher in the Europe at 1163.16, while Silver is up at 15.47
10th July 2015 – 09:38hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 13th July, 2015
By FxGrow Research & Analysis Team
Eurozone Leaders have reached a Greek Bailout Agreement
Eurozone leaders have agreed upon a Greek bailout deal and keep Greece in the Euro. European Summit Chair Donald Tusk tweeted in a message “Euro Summit has unanimously reached agreement”. The new bailout proposed for Greece will include serious economic reforms and financial support.
"After 17 hours of negotiations, we have finally reached it. One can say that we have ‘agreement’. Leaders have agreed in principle that they are ready to start negotiations on an ESM programme, which in other words means continued support for Greece" - EU council President Donald Tusk.
"There are strict conditions to be met. The approval of several national parliaments, including the Greek parliament, is now needed for negotiations on an ESM programme to formally begin" - EU council President Donald Tusk.
Following the news EURUSD shot up and touched a high of 1.1195 in the European trading session. Euro was unable to hold on and drifted lower as the traders sentiments shifted towards US rate hike later this year.
The third bailout program for Greece is estimated at 86 billion euros and will require Greek parliament to push legislation including tax and pension reforms as demanded by its creditors.
“Greece had secured debt restructuring and a 35 billion euro growth package. We fought a tough battle. We face difficult decisions” - Greek Prime Minister Alexis Tsipras.
“I think the euro is being pulled down by expectations that higher US rates will support the dollar, and the cost of Greece deal, including a worsening Greek economic crisis and increasing fissures in Europe’s leadership” - strategist at Union Bancaire Privée.
“The country which we help has shown a willingness and readiness to carry out reforms. The advantages far outweigh the disadvantages" - German Chancellor Angela Merkel.
The Greek Parliament needs to approve the terms of the agreement without any delay. A fund will be created to monetize some Greek State assets owned by the Greek government to help pay down the country’s debt.
Greece will also need to seek the assistance of the International Monetary Fund to monitor the country’s adherence to its bailout commitments.
Euro group head Jeroen Dijsselbloem said a fund will be set up to tackle the debt and recapitalization of the country’s banks. The total size of the fund would be around 50 billion euros.
“Once approximately €25 billion needed to recapitalize the banks have been used, 50% of the remaining funds will be used to bring down debt even more, and 50% can be invested in Greece by the Greek government. This is one of the key elements on both debt sustainability and to let growth return to Greece.” - Euro group head Jeroen Dijsselbloem.
Crude oil is trading lower at $51.66 after IEA reported that world oil demand will be slower in the next year.
Gold is trading lower in the Europe at 1156.24, while Silver is weak at 15.47
13th July 2015 – 10:05hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.