Greece’s future in the euro has finally
been confirmed, for now at least! Last night after months of discussion, the
announcement was made that Greece would receive its third tranche of bailout
funds, as well as numerous other adjustments to the requirements that may have
strangled the economy.

Greece’s future in the euro has finally
been confirmed, for now at least! Last night after months of discussion, the
announcement was made that Greece would receive its third tranche of bailout
funds, as well as numerous other adjustments to the requirements that may have
strangled the economy.

Allaying initial fears that Greece may
become illiquid, Greece was cleared to receive the €34.4bn December
installment, endowing it with the cash necessary to survive. Further measures
include rate cuts on bailout loans, suspended interest payments for a decade
and extended time for a Greek bond buyback.

Despites investors’ unrelenting belief that
the troika would manage to come to an agreement, the pressure, on what has been
a focal point of the Eurozone economy, has lifted momentarily as euro leaders
admire their efforts.

With a Greek plan in place, attention may
soon turn to the next hurdles that the 17-nation area may have to maneuver. A
seemingly relentless job, a future bailout for Spain may be the next saga
Draghi and his counterparts must conquer, as well as the languid economic
performance of each nation.

This morning, despite the much-lauded
announcement, the effects of the bailout appear to have already been priced
into the market. Following last week’s prolific gains for the shared currency,
there were thoughts that the euro would not move much on the news, so far this
morning, this seems to be the case. 

Key
Announcements Today:

• 09.30am – GBP – Revised GDP q/q
• 09.30am – GBP – Prelim Business Investment
  q/q
• 13.30pm – USD – Durable Goods Orders m/m
• 15.00pm – USD – CB Consumer Confidence