EU says door remains open for a Greek deal but time is running out
- Aid program expires at midnight tonight
- Tsipras called Juncker last night
- Juncker explained last minute deal
- Response from Tsipras has not yet been received
- Contacts are ongoing between Athens and Brussels
It very much sounds like there is a lot of last minute negotiations going on ahead of the bailout deadline tonight. The main risk to the euro is if we do actually get something put in place. The Troika were pretty rigid on their last proposal but they may well be dangling a carrot in front of Tsipras who is now weighing up his options. Considering the peanut amounts they were arguing about when he broke off negotiations, that gap may have closed enough to have him thinking about making the trade
Certainly something is going on behind the scenes so be prepared for the possibility of some big market moving news. If a deal happens we could well see all the risk off moves from Sunday/Monday reverse. If it's bad news then I'm not sure we will see that much downside, other than a knee jerk as the market is set for the referendum anyway.
EURUSD shorts are the ones that could be in for a rough ride if a deal is announced
