Weekly review: the Greek drama seems to be without happy end

There is still no progress in the debt talks between Greece and its creditors, and the likelihood for a Greek default rises. The Greek government provided a new proposal this week, but its creditors said that the proposal is insufficient. The culmination of the debt talks was yesterday as the International Monetary Fund (IMF) technical team has left the debt talks in Brussels, saying there were "major differences".

News also reported that Germany was preparing for a Greek default.

The situation could only change if the Greek government accepts almost all conditions of its creditors. The other reason could be the pressure from the rest of the world to continue the debt talks until a new deal is reached.

Government bond markets were volatile this week, showing fears of the debt talks' results.

The U.S. economic data was mostly strong this week, but it does not mean the Fed will start raising interest rate next week. The World Bank warned the Fed this week to delay the interest rate hike until next year. It is the second warning. The International Monetary Fund (IMF) also warned last week that the Fed should delay its first interest rate hike until the first half of 2016.

It is possible that the Fed will take into consideration this warning deciding to raise or not to raise its interest rate.

Markets are expected to be volatile next week as there is still no deal between Greece and its creditors and as investors are awaiting the release of the Fed's interest rate decision.