Greek list likely to be approved – will EUR/USD rise?
Greeks taking it back to the bank
Literally
After reports of a mass exodus of cash from the banks last week by worried Greeks a senior bank official is now quoted on Rtrs saying EUR850mln has made it way safely bank into the vaults over the past two days
There was talk last week of amounts up to EUR1bln per day being withdrawn ahead of the Eurogroup decision on the Greek debt programme/extension which we eventually got on Monday
There's surely a fair bit already that's made its way into foreign fields and some will still be under the mattress but this latest news is encouraging nonetheless
Don't get bullish on Greek bank deposit news just yet
It's never a straight story from Greece
Ekathimerini news is reporting that the jump in deposits lately is not solely down to happy Greeks liquidating their mattress accounts in favour of bank accounts again, but comes via large pension payments, €718m's worth.
Netting off the data of private sector deposits, used to proclaim the return of deposits, from the pension payments via retail and corporate deposits, the net effect is actually zero (if I've read the translation properly)
Greek protesters have been throwing fire bombs in anti-government riots
Dozens of black-clad protesters clashed with riot police in central Athens on Thursday, smashing shop windows, throwing petrol bombs and burning cars after an anti-government march, the first since the leftist Syriza party took power a month ago.
Around 450 far-left protesters took to the streets of Athens against the newly elected left-right coalition government of Prime Minister Alexis Tsipras, which agreed a deal with EU partners last week to extend an aid program to Athens.
The deal has triggered dissent within Tsipras' own party and accusations by some on the hard left that the government is going back on pre-election promises, including to end a much-hated 240 billion euro EU/IMF bailout program.
After the march, about 50 anti-establishment protesters wearing hoods hurled petrol bombs and stones at police in Athens' central Exarchate district, a Bohemian quarter known as a haunt for artists and left-wing intellectuals.
A small number of shop windows and bus stops were also smashed or damaged during the violence.
The incidents, albeit on a small scale, mark the first public disorder against the leftist government, which was elected on Jan 25 on a promise to write off a chunk of the country's debt and end painful austerity which has helped push one in four Greeks out of work.
Germany Says 'Ja' to Greek Bailout Extension
The German Bundestag has given a green light to the extension of financial aid for the debt-ridden country, with a resounding majority of lawmakers voting in favor of such a decision.
According to the official results of 587 votes cast, 542 lawmakers voted in favor of the extension of the rescue package, while 32 were against it and 13 absented.
The four-month bailout extension hammered out by euro zone finance ministers now needs to be ratified by the 19-nation bloc's members. As Europe's powerhouse, Germany's approval of the agreement is seen as crucial.
"We’re not talking about new billions for Greece, we’re not talking about any changes to this program - rather it’s about providing or granting extra time to successfully end this program," said German Finance Minister Wolfgang Schaeuble.
Ahead of the vote, Schaeuble pointed out that extending Greece’s rescue plan by four months had not been an easy decision for euro zone finance ministers to make.
The deal between the euro zone and Greece includes a number of reforms that the latter has pledged to implement, including a fairer tax system, cracking down on tax evasion, tackling corruption, and combating fuel and tobacco smuggling.
Greece Told Not to Waste Time as Euro Finance Ministers Meet
Euro-area finance ministers said Greek officials must pick up the pace of negotiations to unlock more of bailout funds, as the country risks running out of cash.
“We have to stop wasting time,” said Dutch Finance Minister Jeroen Dijsselbloem, who heads the finance ministers’ group. “We’ve lost over two weeks -- in which very little progress has been made. The real talks haven’t started yet. There has been no implementation.”
Greece won a four-month extension of its rescue agreements last month, giving Prime Minister Alexis Tsipras some breathing room to hold talks with the rest of the 19-nation bloc. Dijsselbloem said talks have slid backward since then as Greece hasn’t offered the detailed measures that are needed.
The renewed tensions threaten to temper a rally in Greek bonds sparked by optimism over the provisional accord.
The Greek ASE lost 3.7 percent, heading for its lowest level in about three weeks, with Piraeus Bank SA down more than 10 percent. Greek three-year yields rose 187 basis points, or 1.87 percentage points, to 15.91 percent at 2:43 p.m. London time.
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Reports are emerging that the list of reforms submitted by the Greek government will receive an approval. A Eurogroup teleconference commences at 13:00 GMT to debate this. Earlier in the day, the euro reflected some doubts and slid lower, yet within the range.
EUR/USD is still stuck in range. Will it rise? Other forces are in play as well.
The letter sent by Greek finance minister Yanis Varoufakis to his euro-zone peers appears to offer quite a few concessions. It may cause trouble at home, but could be applauded by his colleagues, even in Spain and Germany.
The Spanish right wing government led by Mariano Rajoy, has boxed before international demands and triggered the rise of the anti-austerity Podemos party. It has opposed Greece’s will, but has now changed its mind:
RAJOY SAYS SPAIN VERY SATISFIED BY DEAL WITH GREECE
There are other events on the agenda today. One hour after the teleconference begins, ECB president Mario Draghi is set to speak. Until the Greek crisis made a comeback, he was certainly the biggest euro mover.
And from the other side of the equation, Fed Chair Janet Yellen is set to testify at 15:00 GMT. These will both serve as reminders about the monetary policy divergence that weighs on euro/dollar, and is likely more powerful than news from Greece, good or bad.
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