Is it bullish for the euro?
No. It is only bullish in the context of taking the chaos of failing to reach a deal off the table. A failure would radically increase the odds of an uncontrolled default.
Almost all observers agree that even after a “successful” debt swap Greece will have trouble paying its remaining debts.
The debt swap is pretty much an asymmetrical risk…All to the downside. Taking the downside off the table if they do a deal today may be good for a pop but it is not a sustainable plus as Greece is a twice-bailed out financial black hole.
