Friday, 3 July 2015

The Greek Drama reaches the final curtain, YES or NO?

Dear Traders 

This week end the Greek people get to decide whether or not to accept the bailout conditions proposed jointly by the European Commission(EC), the IMF and ECB on 25th June 2015

Legal Validity

Today the Greece’s top administrative court, the Council of State, is due to rule on the legality of the referendum
The referendum may violate the country’s constitution by posing a question about public finances

The Question

Voters will be asked whether they approve the proposal made to Greece by the EU, the IMF and the ECB during the Eurogroup meeting on 25 June.
The proposal consists of two documents, titled Reforms for the completion of the Current Program and Beyond, and Preliminary Debt sustainability analysis.
The question will contain two choices stated as
·         Those citizens that reject the proposal of the three institutions vote 'No’ – not approved
·         Those citizens that agree with the proposal of the three institutions vote 'Yes' – approved

Alex Tsipras, the Prime Minister of Greece, recommends a ‘No’ vote
Although the consequence might be the exit of Greece from the Eurozone, there has been rhetoric that this could be used as a tool for Greece to renegotiate its position within Europe.
From a practical point of view the banks re open on July 7th

The Polls

I have seen 4 polls the latest was from the University of Macedonia with 1,042 people survey 42.5% Yes and 43% no.
Alco’s polls was a ‘yes’ whilst Focus and pro rata were both ‘no’

This is all destabilising and if the price action from last week end is anything to go by then a move lower in €/$ is what we expect.
Our original comment was that 20th July was is the most significant date as the ECB’s position will harden if their payment is missed


Enjoy your week end if you can.

Anish S. Lal @anish8fx
FX & Precious Metals Sales, Atom8 Financial Services LLP
2nd Floor, Centenary House, Palliser Road, London W14 9EQ, UK
T: +44(0)20 3405 3910 | M: +44 (0)7983701816 | anish.lal@atom8.com | www.atom8.com

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