All eyes on EU meeting as Greece makes concessions

Currencies Direct June 22nd 2015 - < 1 minute read

The euro is trading higher this morning on news of a possible deal between Greece and its creditors, but with few details of the new proposal emerging it is difficult to assess how far away both sides are from an agreement. Behind the scenes, the European Central Bank (ECB) remains active in keeping Greek banks on life support.
The ECB increased the Greek banks’ Emergency Liquidity Assistance levels on Friday (19 June), and looks set to do it again this morning as large scale deposit flight continued over the weekend. Capital controls may still be needed if a deal fails to materialise over the next few days.
Greek Prime Minister Alexis Tsipras will meet with European Commission chief Jean-Claude Junker and the heads of the ECB and International Monetary Fund this morning (22 June). They’ll discuss details of a new proposal submitted by Greece yesterday (21 June), ahead of the EU leaders’ meeting this evening.

US and Eurozone data for the week ahead
Other than the EU meeting later on, it’s a quiet start to the week from a data standpoint. Eurozone consumer confidence should remain subdued until we get resolution either way from Greece. Both German and Eurozone-wide Purchasing Managers’ Index data is due tomorrow (23 June). These figures should show production remaining in expansion territory for another month.
Over in the US, durable goods orders look set to decrease slightly from May, with consensus estimates at -0.7%. UK-focused data doesn’t get going until Wednesday, when the forecast for house purchase data is for a small increase in loan levels from last month.


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