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.

 


EUR/USD

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


USD/JPY

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


GBP/USD

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

 

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