Strategy Video: Where To Now for Greece and the Euro?
• On the brink of yet another crisis, Greece and the Troika came to an agreement to extend support
• While both sides hail progress, there are still plenty of unknowns and milestones to keep tabs on
• The lack of a Euro rally following the compromise indicates there are deeper considerations
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With time running out and the threat of a crisis at nigh, Greece and its creditors finally reached a compromise to end this past week. The relief rallied the Euro, but the move stopped well short of what a recovery from three weeks of fear would suggest. In part, the lack of momentum is linked to the limited details of the agreement and the knowledge that there are still numerous hurdles that can plague the eventual financial and economic recovery. Further, restraint from pairs like EURUSD and EURJPY signal two other burdens from the shared currency: a throttled stimulus effort and clear exposure to 'risk' trends. We discuss the progress on the Greek austerity standoff, what lies ahead and what Euro traders should keep track of in the weekend Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.