Greeks Approve Last Minute Proposal

In a complete betrayal of their campaign promises to voters, Syriza Finance Minister Yanis Varoufakis agreed in principle to an extension of the current bailout terms with minor changes to the phrasing of the conditions. The last minute deal was struck just before the negotiation deadline while leaving Greece in exactly the same position it started at. While Greece has until the end of the day to submit its reform proposals to the Eurogroup, this stunning turn of events is unlikely to be met with optimism at home as party members and voters rebel against the latest measures. The latest deal is unlikely to change the status quo or the inevitable default facing the Greeks. EURUSD soared on the agreement, rallying nearly 150 pips before pulling back, erasing half the move.

Central Bankers will be dominating the headlines in the week ahead as speeches are expected from many of the globes largest policymakers. The Bank of England’s Governor Mark Carney leads off the week which will also include testimony from Federal Reserve Chairwoman Janet Yellen and comments from ECB President Mario Draghi. All of the Central Bankers are likely to discuss inflation as it relates to economic growth and the potential downside risks. Aside from the acknowledgement of deflationary forces, discussion of interest rate policy and future rate hikes will be carefully monitored by analysts and traders as individuals seek to nail down a more concrete timeline for more hawkish policy implementation.