Talking Points:
• Greece will dominate the headlines to start the new trading week with a crucial creditor vote
• Risk trends may prove the more explosive development with SPX pressure at over a 20-year high
• Rate expectations will return with the USD leading the way and China will release 2Q GDP
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The way forward looks very volatile and risky. Both active themes and scheduled event risk threaten to generate major market swings. Having already kept the FX market on edge these past months - especially over the past two weekends - the Euro will once again dominate headlines as Greece's creditors decide whether to accept its proposals on what some officials have dubbed the final opportunity to negotiate. There is plenty of fundamental weight to keep the Euro sinking, but resolution to this uncertainty can certainly offer the currency a relief rally. Meanwhile, risk trends are the more pervasive and leveraged theme to watch. The S&P 500 may have seemed contained this past week, but the pressure behind this sentiment benchmark is the highest in decades. Furthermore, if headlines and speculative trends weren't enough, there is an extensive calendar of items that will recharge relative monetary policy trends in the currency market. We wade through the very dense week ahead in this weekend Trading Video.
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