The Greek government has approved a comprehensive reform deal last night and it is attempting to pass it through parliament.
Markets are cheering the move, even though we haven’t heard yet from the creditors. EUR/USD has already hit resistance at 1.1130 and sits above 1.11. Updates.
Update: EUR/USD breaks resistance on hopes for an early deal on Greece – but issues remain
The basis for the proposal includes everything they wanted – a complete climbdown from Tsipras. However, it also consists of debt restructuring, a long term perspective of 3 years and a front loaded 35 billion euro investment plan in Greece.
As we explained – this is an offer that harsh on austerity but these changes make a difference. It is one that the creditors just cannot refuse. There is certainly internal opposition to this move within his SYRIZA party, but chances are it will pass.
And the markets like it. Analysts now lower the chances of a Grexit, European stock markets are higher and EUR/USD is on higher ground.
The move began when the news broke, but the trend intensified in the wake of the European session. 1.1130 serves as resistance and it is followed by the round level of 1.12. Strong resistance awaits at 1.1290. Support is at 1.1050, 1.10 and 1.0915.
Greek crisis – all the updates
Here is the chart showing the gradual rise to resistance:
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