In it’s race to avoid a full scale bankruptcy, Greece has this morning submitted a package of proposed reforms to its Eurozone creditors in hope that a last minute deal can be struck heading into the weekend’s deadline.
The package has been reported in Greek media here, and contains a proposal of tax increases and pension reforms. Both major sticking points in past proposals.
If accepted by the Eurozone, the measures would have to be voted through parliament next week, meaning that Greece would require yet more emergency funding to keep the banking system hanging on by a thread. Bad news for Greek people who are even unable to access the 60 Euro per day limit at most ATM machines, simply because there is no cash circulating through the system.
“Proposal submitted by Greeks said to be similar to the proposal from the EU commission on June 26.”
Yes, the Eurozone proposal that the 60% of the nation voted OXI against. I guess the Varoufakis resignation makes a bit more sense now.
Probably not the best outcome for democracy but one that simply had to be made.
Uncertainty and the Fed:
While not straight from the horse’s mouth, the IMF weighed in on the issue of when the Fed will raise rates with this gem of a quote overnight from chief economist Olivier Blanchard:
“The Fed has more or less the same interpretation of the implications of the events in Greece and China as we do, which is that they are not of major importance for the U.S. at this point.”
“It should not affect their choices in terms of monetary policy very much.”
Make of that what you will.
On the Calendar Today:
Second tier data out of Australia during the Asian session with home loan data reading the change in the number of new loans granted for owner-occupied homes. Shouldn’t be too much of a market mover but with the housing market as it is, it’s worth keeping an eye on.
AUD Home Loans
CAD Employment Change
CAD Unemployment Rate
USD Fed Chair Yellen Speaks
EUR Eurogroup Meetings
Chart of the Day:
Price sits at an excellent technical level on USD/JPY that we can look to manage our risk around.
On the daily chart, you can see that after rallying hard to new highs, price then spent the last 2 months pulling back in a short term bearish channel.
With the 120.00 psychological level acting as an obvious area of support this week, price has now rallied back to retest a previously significant support/resistance level with touches marked.
The 4 hourly chart shows the short term channel a lot better and this level we are approaching is likely to have sellers waiting to enter. Most importantly, it’s a clear zone for you to manage your risk around.
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Dane Williams – @VantageFX
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