Weekly review: Next round of the Greek drama?
07.08.2015, 15:09

Weekly review: Next round of the Greek drama?

The Greek debt crisis and the first interest rate hike remain in focus, whereby the Greek debt crisis receded a little into the background. But I think the negotiations on the third Greek bailout programme will be difficult. The European Commission hopes to reach a deal by August 20 as Athens will have to repay €3.4 billion loans to the European Central Bank on August 20.

The German newspaper Bild reported yesterday that the German government doubts that a deal on a third bailout programme for Greece can be reached in August. The government believes that Greece will need another bridge loan.

In my opinion, another bridge loan will be needed as negations between Greece and its creditors has always been very tough. As the deadline approaches market participants will focus again on the Greek problem.

Market participants were focussed on the Fed this week. They were awaiting the release of the U.S. labour market data, with the hope, that the labour market data would be better than expected. But the labour market data was mixed. The U.S. economy added 215,000 jobs in July, missing expectations for a rise of 223,000 jobs, after a gain of 231,000 jobs in June. The U.S. unemployment rate remained unchanged at 5.3% in July, in line with expectations. Average hourly earnings rose 0.2% in July, in line with forecasts, after a flat reading in June.

Many market participants are awaiting that the Fed will start to hike its interest rate in September, despite the weak wage growth figures and low inflation. They will closely monitor the incoming U.S. economic data ahead of the next Fed monetary policy meeting in September.

I think the recent U.S. labour market data would not convince all Fed officials to start raising its interest rate in September.

Markets are expected to be volatile as investors remained focussed on the U.S. economic data and the Greek debt problem. It is likely that the currency pair EURUSD will test the level of $1.1000, maybe even the level of $1.0900, if a deal between Greece and its creditors is not reached or if the U.S. economic data will be negative. If there are some problems in the negotiations between Greece and its lenders or if the U.S. economic is better than expected, the currency pair EURUSD may test the level of $1.0800.

  • Name: Konstantin Meinhardt
Symbol Bid Ask Time

© 2000-2023. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Japan and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Live Chat E-mail
Choose your language / location