Video: Why Didn't the Euro Rally after Greece's Weekend Breakthrough?
• After 17 hours of intense negotiations, Greece and its Eurozone creditors came to a tentative agreement Sunday
• An €86 Billion bailout program seems to be waiting Greece should it and its counterparts' governments approve
• Despite the news, the Euro sank against all its major counterparts with a 1.4 percent Drop for EURUSD
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It seems we are finally seeing the light at the end of the tunnel for the Greece-Eurozone standoff, so then why did the Euro tumble across the board? Is the currency immune to positive news or is this not the source of optimism we would believe on the surface of the headlines? There are likely a number of factors contributing to the Euro's weakness following news that Greece's leaders were capitulating on austerity and its creditors were preparing to provide much-needed financial relief. Skepticism is likely the first line of trouble here as Greece has had many false dawns since the beginning of the year when Syriza rose to power...and even the past five years as its general financial trouble has dragged on. Another aspect contributing to the Euro's restraint is the deflated risk premium that we had seen heading into the critical weekend - seen in Greek bond yields, credit default swaps and even European equities. However, one of the most troubling disconnects - as it would insinuate that a 'positive' outcome may simply not generate much advance at all going forward - may be discounted importance of Greece over the Eurozone's health and its currency. We discuss Greece, its recent progress and the lack of Euro reaction in today's Strategy Video.
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