The one thing that mystified me throughout the Greek crisis was the sudden concern by all and sundry over adhering to the EU Treaty. These guess pick and choose what to obey and what to ignore on a daily basis and suddenly they’re all sticklers…
The ECB bent its own rules today, extending the period in which it will accept low-rated collateral like Greek government debt as collateral.
Not good for ECB credibility, but good for the Greeks as it takes some of the immediate pressure off of them.
The EU continues to move toward a back-stop deal for Greece and the market will be very disappointed if it is not fully agreed before the week is out.
EUR/USD reached 1.3370 but has eased back to 1.3345 as the market grapples with the ECB’s diminished standing. 1.33330/35 is short-term support.
