MARKET BRIEFING – LONDON OPEN 13.08.2015
This evening the Greek Parliament is due to assemble for an emergency session to approve the country’s third bailout agreement, concluded with the international creditors on Tuesday. The timing of the event is still uncertain.
The activation of the deal will mean the Greece will be giving most of its sovereignty to the creditors, represented by the IMF, the ECB and the European Commission.
The 29 pages of the new agreement, among the others, quotes the following: “The (Greek) government commits to consult and agree with the European commission, the European Central Bank and the International Monetary Fund on all actions relevant for the achievement of the objectives of the memorandum of understanding before these are finalised and legally adopted.”
The arrangement will also induce the major reforms in pension and taxation systems, as well as in health and welfare sectors. Privatizations of the public properties will be extended significantly.
Greek Prime Minister Alexis Tsipras remains positive that the deal will be approved, however, he has certain doubts whether all eurozone members will agree to it.
“Despite the obstacles that some are trying to put before us, I’m optimistic we will reach the agreement and loan support from the European mechanism, which will put a final end to economic uncertainty,” Tsipras was quoted referring to the 86 billion euro deal during a visit to the Ministry of economics.
Germany, among a few more European states, remains sceptical regarding the matter. Even though it considers the deal goes in the right direction it is not yet ready to say whether it was prepared for a vote in the Bundestag.
Before the deal goes to Bundestag, it has to be approved by the Greek Parliament, which should be completed by the early hours of the Friday morning. As the ruling party Syriza has the opposition party support, the confidence that the bill will pass is very high.
The approval of the deal will likely to bring the dissolution of the Syriza and forming a new party as soon as this autumn since the disagreements within the party are widening. Syriza MP Costas Isichos said the vote would lead to an “immediate divorce.”
“We are facing major political developments where the ‘no’ front will take shape,” he continued, referring to the outcome of last month’s referendum on austerity measures.
EURUSD
The intraday technical outlook
Trend 1 hour: UP
Target 1: 1.1272
Target 2: 1.1042
Projected range in ATR’s: 0.0115
Daily control level: 1.0980
GBPUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.5713
Target 2: 1.5507
Projected range in ATR’s: 0.0103
Daily control level: 1.5670
USDJPY
The intraday technical outlook
Trend 1 hour: Range
Target 1: 124.96
Target 2: 123.44
Projected range in ATR’s: 0.7588
Daily control level: 123.80
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9848
Target 2: 0.9658
Projected range in ATR’s: 0.0095
Daily control level: 0.9710
USDCAD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.3099
Target 2: 1.2855
Projected range in ATR’s: 0.0122
Daily control level: 1.2910
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7472
Target 2: 0.7282
Projected range in ATR’s: 0.0095
Daily control level: 0.7425
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1141.00
Target 2: 1110.16
Projected range in ATR’s: 15.42
Daily control level: 1077.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 52.00
Target 2: 48.68
Projected range in ATR’s: 1.6587
Daily control level: 55.50
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