FXStreet (Barcelona) – The Investec Team comments on the key developments in the Greece crisis, and further notes speculation is rife that the Greeks and its creditors might reach at an agreement in the next 2 days.
Key Quotes
“The Greek government last night were celebrating their democratic outcome, buoyed they can take this reaffirmed mandate back to their creditors and negotiate a quick resolution with a stronger hand. In Europe, some officials see it as a vote against Europe with some of the more hawkish Germans even suggesting a period outside of the Euro for Greece, could be needed. One thing is for certain, Greek debt was unsustainable – so said the IMF in their latest report, so said the Greek people in their latest vote.”
“Now, the various parties will stop and assess. Today, in Greece political parties meet over the referendum result. In Europe, Juncker, Tusk, Draghi, and Dijsselbloem will conference call over Greece this morning, with Greek bank funding a top discussion point.”
“Importantly the ECB will hold a meeting today on Greek bank Emergency Liquidity Assistance, on this point the ECB is expected to maintain the current level of €89bn, preferring not to make any major changes ahead of leaders’ discussions.”
“This evening Merkel meets Hollande to discuss implications of the Greek vote for project Europe. In the UK, Mr Cameron will do the same with his cabinet, and tomorrow another Eurogroup meeting is scheduled, ahead of a planned Summit tomorrow afternoon.”
“One Greek report has suggested that there would be an attempt to reach an agreement within the next 48hrs, meaning that today and tomorrow could be crucial in determining Greece’s future in the Eurozone.”
(Market News Provided by FXstreet)