Unless there is debt forgiveness, and there will not be, we’ll be back in another six months to do this all again. Lower interest rates, more time to pay, foregone profits from the ECB and others will not be able to fill the yawning hole that is the Greek budget.
Given we have bounced nicely in the last several sessions on the prospect for another can-kicking agreement to postpone the inevitable, I can’t imagine much of a rally should a deal finally be unveiled today. At best, we make a run to trigger stops above 1.30 and 1.3020 before a fade, I’d hazard a guess.
