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The ministers of the Eurogroup have reached a deal for a 4 month extension for the Greek bailout. This includes no new austerity one on hand but no new  measures on the other side. It also requires a Greek document ready by Monday in which more details are provided.

Germany and  Greece are beginning to claim victory. For EUR/USD, it means some relief that could likely lead to a temporary rise, before monetary policy divergence weighs on the pair. And, the Greek crisis is probably  far from being over, it just enters a spring break.

Earlier, EUR/USD shot higher above resistance. It seems to settle there as markets draw to a close.

A press conference is set to  provide some more details, but the mere fact that a deal has been reached is the most important part.

Dutch finance minister Dijsselbloem speaks

  • Flexibility in the program.
  • A successful review will allow disbursing of funds.
  • The request for extending the program required conditions from Greece.
  • Firm commitment to refrain from rolling back actions.
  • Greece honors financial obligations and debt sustainability.
  • The institutions will take the economic circumstances into account with the primary surplus. No new number for the primary surprlus
  • A first list of reform measures based on the current arrangements on Monday.
  • The institutions will then provide if this is sufficiently comprehensive for a successful completion of the review.
  • This will enhance decisions.
  • Further  specification will be done by the end of April.
  • Next week, national procedures will be launched for approving the extension by the end of February.
  • This is a very positive outcome.

EU’s  Moscovici  talking now.

  • Confident in a positive outcome
  • If the Greek proposals are good Monday, we will proceed and approve and this will be the final stage for the extension.
  • We will then continue working on the substance of the policies.
  • Measures to include sound policies are needed.
  • The Greek tax administration must be more effective.
  • Social fairness is also necessary.
  • Good faith is a major issue there.
  • However,  there is also a sense of urgency.
  • We have shown our  efforts.
  • Trust is necessary.

IMF chief Christine Lagarde talks now:

  • Dijsselbloem has put a lot of energy here.
  • Every part is important i the statement.
  • The IMF continues in its supervisory role.
  • Very constructive process.
  • End of April: final list of reforms to be agreed upon.
  • After a delivery, disbursements can be made.
  • We all have to pay attention to the financial point of view.

OK, there’s nothing new anymore. Here is more information and have a great weekend:

More:  3 bearish EUR/USD scenarios for 3 Different Greek Outcomes – Goldman Sachs

EUR/USD spike

Here is the chart, which already shows the spike higher. 1.1373 is  a critical line that served as a separator of ranges:

EURUSD rising sharply on optimism on Greece February 20 2015 euro dollar Greek crisis

In this week’s podcast, we cover  Questions for traders, State of Fed, Greek crisis, oil, gold and GBP

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