EU-Greece deal still far away – DB

FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, gives his view on the Greek front following recent developments.

Key Quotes

“Friday saw Greece’s Athex index finish around 5% lower on news of deferring the IMF payments. Greek bonds sold off further with the 10yr closing 30bps higher at 11.2%”.

“At home PM Tsipras showed little signs of compromise on Friday after having told the Greek parliament that the creditors’ proposals are unrealistic and labelled the latest offer from creditors as “a bad negotiating trick”.

“EC President Juncker said that Tsipras had misrepresented aspects of the negotiations. Greece was also a key conversation point at the G7 Summit in Germany over the weekend. During a bilateral meeting with Merkel, President Obama called for Greek reforms and return to sustainable long term growth”.

“Bloomberg noted that Greek negotiations will resume today and will likely continue on the sidelines at an EU-Latin America summit in Brussels on Wednesday”.

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