FXStreet (Edinburgh) – Analyst Jim Reid at Deutsche Bank reviewed the recent events in Greece and the upcoming referendum on Saturday.
Key Quotes
“Tsipras has called for a referendum on the ‘final’ EU bailout offer (which was never actually formally finalised) to be held next Sunday (5th July)”.
“Ironically any agreement that might have been available expires tomorrow night so it will become largely hypothetical by then”.
“It is also a pretty vague question being asked and one that leaves it open to interpretation what citizens are in effect voting for”.
“A yes vote will actually probably only start a new round of negotiations with what would be seen as a discredited government – assuming they survive”.
“Tsipras is campaigning for a no vote. In response to the weekend news the ECB has capped the ELA at Friday’s levels. After the current program expires tomorrow night all eyes will be on whether the ECB actually suspends the ELA, effectively deeming the Greek banks insolvent”.
“There will be little going back if they do so we would expect them to just keep the cap for now until the vote is made”.
(Market News Provided by FXstreet)