Intraday Market Thoughts

Greece Edges Close to Bailout, New Premium Intermarket Insights

by Adam Button
Feb 17, 2012 0:55

Growing indications that EU officials will affirm a Greek bailout on Monday sparked a euro reversal. GBP was the top performer while JPY continued to lag. The minutes of the BOJ meeting are a highlight of Asia-Pacific trading. A new set of Premium trades is issued, focusing on oil, S&P500 mini & EURUSD. See details below.

Greece found additional budget savings and appears to be on the cusp of a bailout deal that will clear the way for the PSI and avert a March default.

The euro fell below 1.30 midway through European trading on continuing speculation about a Greek default. Rumours about a secret plan for a re-introduction of the drachm and talk about deferring a large portion of the bailout until after the election weighed on the euro.

But those rumors were washed away as a Eurozone official was quoted as saying were almost there and Samaras said Greece has done what is needed. Progress was confirmed by an ECB debt swap that saw it replace its Greek debt with new paper that wont be subject to a collective action clause that politicians are expected to impose.

The result was a rapid euro rise to 1.3150 with similar climbs in other risk trades.

Asia-Pacific Preview

We will get additional details about the latest round of BOJ quantitative easing when the meeting minutes are released at 1850 GMT. Signs of further asset buying could push USD/JPY above 79.00. Otherwise, there are no significant events on the calendar.

The latest Premium Intermarket Insights focus on oil and the euro & S&P500 mini, while maintaining existing trades on USDCAD, AUDNZD and gold. To go directly to the piece, click here: Nonsubscribers can click here


Latest IMTs