EU/IMF Agreement gives Geece mild relief

<p>The FX risk trade has a very slight positive tone this morning following a twelve hour meeting resulting in a deal that will see Greece […]</p>

The FX risk trade has a very slight positive tone this morning following a twelve hour meeting resulting in a deal that will see Greece receive its next tranche of a much needed bailout fund with EUR 35 Billion to paid in December and a further 9.3 billon Euro’s like to be paid in three instalments in the first quarter of 2013.

A new debt target was also agreed by both the EU finance ministers and the IMF which has added to the positive tone to risk this morning

Reductions of 100bp to the interest rate charged to Greece on the loans provided in the context of the Greek Loan Facility.

Reduction of 10bp on the guarantee fee costs paid by Greece on the EFSF loans.

An extension of the maturities of the bilateral and EFSF loans by 15 years and a deferral of interest payments of Greece on EFSF loans by 10 years

A re-allocation of SMP revenue received by the National Central Banks back to Greece

The single currency took out the 1.3000 options barrier making a high of 1.3010 as the statement was released but has since fallen back below 1.3000 as early European trading sits 1.2985/1.3010. Looking ahead to data releases today the highlight this morning will be the second reading for the UK Q3 GDP and durable goods and consumer confidence from the US this afternoon.



Supports 1.2945-1.2900-1.2820 | Resistance 1.3025-1.3050-1.3080


Supports 81.85-81.60-80.90 | Resistance 82.50-82.85-83.30


Supports 1.6000-1.5970-1.5910 | Resistance 1.6080-1.6100-1.6180


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.