While Europe continues to plan and scheme, content in the knowledge that Greece can do nothing to derail plans of status quo preservation, especially ahead of next week's critical parliamentary vote that will see the country imposing even more austerity on its people (see the great profile in the AP today in "Hit by crisis, Greek society in free-fall [7]"), Greece has just decided to pull a "Karlrushe Kardinals who say Nein [8]" move, and as Reuters reported moments ago, the entire process may be scuttled by none other than yet another court, this time in Greece:
- GREEK COURT SAYS PLANNED PENSION CUTS, RETIREMENT AGE INCREASE SOUGHT BY EU/IMF LENDERS MAY BE UNCONSTITUTIONAL
What this means is that suddenly Greece once again has all the leverage (recall that last year the mere threat of a Greek moratorium cost G-Pap his job), a development which in June sent Europe plunging on fears that Greece may vote itself out of the Eurozone, leading to a Grexit, the return of the Drachma, redenomination, collapse in risk levels, the apocalypse and other bad things.
Judging by the reaction in the EURUSD, risk is now once again off.
[9]
More from ANA via Bloomberg:
- Greece’s Supreme Court of Audit ruled that Greek austerity measures including cuts to pensions and an increase in the retirement age may be unconstitutional, state- run Athens News Agency reports, without citing anyone.
- Court of Audit almost unanimous in ruling the measures are unconstitutional, ANA says
- Court ruled on pension cuts, retirement age and cuts to pensioners’ holiday bonuses, ANA says
- Court says 5th cut to pensions in short period of time contravenes number of constitutional articles, ANA says
And just when the HFT momentum algos were ramping everything like you won't ever be able to buy below 1400 again...