So the cats out the bag, Greece missed the €1.6bn repayment to the IMF last night. The market knew it was coming so stocks rallied and the EUR is trading heavily breaking through 1.1100. No doubt PM Tsipras has pulled out his joker card and has passed the buck to the Greek electorate ahead of the referendum on Sunday. Now if anything goes wrong he will not have to shoulder any of the blame.
Then in a surprise move earlier today the Greek government have confirmed while they are pressing on with the referendum on Sunday, they will nevertheless ACCEPT THE terms of the bailout as laid out by the creditors – this is indeed awesome news and we could have potentially stepped away from the cliff.
Having said this what if they vote NO on Sunday yet Syriza accepted the terms today. What then!!!
In the mean-time the USD continues to perform and it is my belief that the Greeks will vote in favour of the bailout.
More to come tomorrow
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