Intraday Market Thoughts

Another 12th Hour Greek Deal

by Adam Button
Feb 21, 2012 6:38

Greece reaches deal with creditors under the OK of European finance ministers. NZD was the best performer while JPY lagged. Monday's Premium Intermarket Insights involve 2 EURUSD longs already in progress, while US crude gains by more than $2.00 from Thursday's trade. Also the return of USDJPY, USDCAD and EURGBP.

Eurozone ministers reached a 130bn 2nd bail-out for Greece after cohercing Greek bondholders to accept a 53.5% haircut, agreeing on autserity to reduce the debt/GDP down to 120.5% by 2020 to meet the IMF target. Greek govt will start moving towards its Troika-induced target of laying off 150,000 public sector layoffs in June. There is talk of combining ESM/EFSF firepower.

The IMF had insisted that, whatever the deal, it must bring Greeces projected debt-to-GDP ratio down to 120% by 2020. A leaked Troika document obtained by Reuters said current deals project to 129% and the finance ministers have sought to lower that figure by slashing interest on loans, forgoing ECB profits or asking creditors for a deeper haircut.

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