In the morning after Greece approved more austerity, there is no relief rally for the common currency.
Doubts about the deal as well as fresh USD strength push the pair lower.
Greek developments
After a long debate in parliament, Greece approved the tough austerity measures that were required as “prior actions” before even getting the bridge loan which would eventually lead to a third bailout.
PM Alexis Tsipras has seen sizable opposition to his moves from his own party. This can complicate things along the road.
But doubts also come from Germany: finance minister Wolfgang Schäuble seems to continue pushing for a Grexit. Apparently, the main coalition partner, the SPD, was not aware of such plans.
In addition, the biggest elephant in the room is the debt: the IMF wants a big fat Greek haircut while Germany refuses. How will that play out?
The next events are an expected approval of the measures by the Eurogroup, and more importantly the ECB decision. The ECB convenes to decide on the rates but also on the ELA – basically on if Greek banks can reopen.
Greek crisis – all the updates
Other moves
But it’s not only a euro story: the relatively upbeat comments by Janet Yellen, which contradicted the weak US retail sales, gave a boost to the kiwi across the board and now we are seeing a second wave of buying.
Here is how it looks on the chart:
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