ECB said to continues with ELA
Dow Jones reports that the ECB has approved a two week extension of the waiver for Greek banks in the emergency lending program. It will total €68.3 billion from €65 billion previously.
Small bid in the euro on the headlines. We've been waiting for the results of the ELA meeting all day. They seemed unlikely to cut off Greece ahead of tomorrow's proposal on the bailout extension. However, the short, two-week extension is a warning to Greece.
Another 3.3 billion euros doesn't sound like much when Greek banks are bleeding 1 billion euros in deposits every two days.
The market also senses that it's an ultimatum. The initial move higher in the euro to 1.1355 has quickly been erased down to 1.1339.
