The Euro has been bid higher since reopening overnight as last minute proposals submitted by the Greek Government are hoped to be the compromise that unlocks much needed bailout cash. With the uptick in deposit outflow hitting a record pace, the financial system’s credibility is quickly fading. If the ECB decides to stop funding Greek banks through the Emergency Lending Assistance program, it could easily be the indication of coming capital controls and bail-ins. Greek Prime Minister Alexis Tsipras is due to meet with creditors from the Eurogroup, ECB, and IMF today to square away a deal. Although unwilling to compromise on the pension problem, Tsipras is suspected to be showing more flexibility on the issue of value added taxes in an effort to show creditors the sincerity of the offer. So far the EURGBP has responded positively as optimism prevails, gapping higher on the open and maintaining gains.
Greece Offers Last Minute Proposal
Daily Analysis - 22/06/2015