These days, one of the strongest-performing sectors in Europe is catering - supplying food and drink to the cognoscenti at all of these meetings of European leaders in Brussels. It was another all-nighter for finance ministers, resulting in a statement being issued at around 4:00am. Greece has apparently won a second bailout from Europe worth EUR 130bln, with private sector bond-holders supposedly accepting a haircut on their Greek holdings of around 75% in net present-value terms. There is much to be done in a very short time before this deal can be said to be actuated. For instance, bond-holders must accept the terms of the debt swap, and each of the eurozone's individual parliaments must sanction it post-haste. A lot can, and probably will, go wrong. But for now, markets are prepared to suspend disbelief and buy the politicians' hyperbole. Invariably, this response results in regret later on, usually very quickly. Watch this latest deal unravel over coming days, as it inevitably will.
Also in today's Daily Forex Brief:
- As good as it gets for risk assets
- Record trade deficit adds to yen woes
- Britain's two-tier housing market