EURUSD (and implicitly the algo-connected S&P 500 futures market) is surging on the basis of optimism (for the new 'deposit tax plan') from the head of the party that abstained from the previous 'deposit haircut vote'.
- *CYPRUS'S NEOFYTOU SAYS SITUATION IS DIFFICULT
- *CYPRUS'S NEOFYTOU EXPRESSES CAUTIOUS OPTIMISM
It seems 'cautious optimism' is contagious but the irony of this politician's two-faced hypocrisy driving any market reaction is mind-numbing. EUR has broken above 1.30, Italian and Spanish bonds are rallying, and Italian stocks are now green for the week.
President Nicos Anastasiades' ruling DISI party has said a solution satisfactory to the troika may be possible within hours. Speaking to reporters, deputy leader Averof Neophytou said: There is cautious optimism that in the next few hours we may be able to reach an agreed platform so parliament can approve these specific measures which will be consistent with the approach, the framework and the targets agreed at the last Eurogroup.
[4]
[5]
Charts: Bloomberg