Tsipras won his latest battle against Greece's creditors but time is now his arch enemy with the Greek financial system frozen. The pound was the top performer of the day while the loonie lagged after a 7% plunge in oil. The RBA decision is up next. A new action was taken on GBPUSD with 3 supporting charts. The CAD selloff sent the Premium EURCAD trade to 200 pips gain and counting.
After falling by more than 150 pips, the euro closed lower by just a half cent at 1.1056 in a tumultuous day. Anxiety about a Greek exit cooled, at least for the moment, after comments from European leaders suggested room for negotiation. Greek finance minister Varoufakis also offered an olive branch of sorts by resigning. European finance ministers disliked his brash style and his exit is a strong signal that Syriza wants a quick deal.
The conciliation from both sides was some measure of progress but we underscore that small steps and platitudes aren't nearly enough. Greece's economy is hemorrhaging and the ECB tightened the noose Monday by raising the haircut on collateral from Greek banks. That effectively narrows the ELA lending program and will exacerbate the cash crunch when (if) banks reopen.