Yesterday, Eurozone Minsters agreed to support Greece with a “bridge loan” to keep their economy afloat until a bail out is approved. €7bn will be handed over from an EU fund.
This could enable Greek banks to reopen after being closed for more than two weeks. The Greek people have been limited to withdrawing only €60 a day.
Eurozone leaders agreed on the bailout in principal on Monday. The deal was dependent on the Greek parliament passing reforms on tax and pensions.
Alexis Tsipras, the Greek Prime Minister won the parliamentary vote. It did however require the support of opposition MPs. A worrying sign for the Syriza party. As we well know political uncertainty can cause market movement and we already have experienced significant Euro weakness.
Today will see the German Parliament back to negotiations for the bail out deal. The Greek parliament then must pass further reforms on 22nd July.
Eurozone talks will then start on a bail out through the European Stability Mechanism. Expect the high volatility on GBP/EUR to continue.
If you are a Euro seller it may be wise to bite the bullet before things get any worse.
If you do have a currency requirement, why not get in touch with one of our experienced brokers by calling free phone 0800 3285884 who will do there utmost to maximise your trade.
Today at 12.30pm will see CPI (Consumer Price Index) Figures released. CPI is a measure of price movements between retail prices of a representative shopping basket of goods and services.
It is a key indicator as to a Country’s economic health and can cause volatility in the market.
I expect to see a slight rise which could cause USD strength, if you have a USD requirement it may be prudent to move before this data release to avoid any potential losses.
You can watch how the CPI data release will affect GBP/USD by watching our live foreign exchange rates feed.
Canada cut their interest rate this week due to Iran’s sanctions being lifted. Iran can now trade with Countries it previously couldn’t and has vast amounts of oil. As Canada heavily relies on oil as an export, surplus oil will significantly hamper Canada’s growth.
CPI data is being released today at 12.30pm and I suspect it may come in better than expected which could potentially will strengthen the loonie. With GBP/CAD currently over 2.0-0 it may be a good move to play it safe and buy before this announcement if you have a CAD requirement.
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