After ramping gloriously on Thursday and Friday, basking in the warm after-glow of an assured done-deal, the FX market appears to be deja-vu-ing all over again as EU leaders throw up all over Greek proposals. EURUSD is indicated 1.1085/1.1056 in pre-market - down around 100 pips from the Friday close - following what one official called "extensive mental waterboarding" of Greek PM Alexis Tsipras.
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As The Guardian reports,
Alexis Tsipras was given a very rough ride in his meeting with Tusk, Merkel and Hollande, our Europe editor Ian Traynor reports.
Tsipras was told that Greece will either become an effective “ward” of the eurozone, by agreeing to immediately implement swift reforms this week.
Or, it leaves the euro area and watches its banks collapse.
One official dubbed it “extensive mental waterboarding”, in an attempt to make the Greek PM fall into line.
An unpleasant image, that highlights just how far we have now fallen from those European standards of solidarity and unity
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Summing up where we stand in Europe - it appears Germany refuses to accept Greece's almost unconditional surrender.
