No sooner had it been reported that the Greek government was starting to draft an agreement with its creditors in the IMF and the EU that would pave the way for a resumption of aid to prevent Greek default, than no less a personage than the Vice President of the EU Commission placed himself on record to the effect that all of this was simply not true.
An announcement of the drafting of such an agreement does indeed carry the implication that the other party to it, the group formerly known as the Troika, has had some part in putting it together and is in substantial agreement. All of this was carried by the German Frankfurter Allgemeine Zeitung newspaper. They even had it that both sides were not only discussing the terms for completing the terms of the current programme, but that conditions for additional aid were also included.
As well as Dombrovkis, some Eurogroup members were prepared to pour cold water on the report. “Nonsense” and “I wish it were true” were some of the comments, according to Reuters.
Euro oscillates on Greek news
The Single Currency got a bit of a lift at the start of the European session trading yesterday, possibly on the strength of the German newspaper report, but then sold off. In the afternoon GMT there was a sharp, but short lived, rise on the release of the Canadian central bank monetary policy statement, which saw the EURUSD pair rise in sympathy with the Canadian dollar against the US unit immediately after this event. For the record, the Canadians kept their core interest rate at the level of 0.75%.
The OmiCronFX Mandelbrot algo routine was there to take a successful short trade in the aftermath of the Greek let-down.