Varoufakis sounds ready to make a deal
Tough talk from Eurozone ministers has weighed on the euro today but Greek finance minister Varoufakis doesn't sound worried. He says he expects a deal within 48 hours.
- Says he has no doubt that within the next 48 hours Europe will find the phrasing necessary so Greece can request a bailout extension
- It's up to the eurogroup to define the flexibility it proposes
- Conditionalities must be specific and precise
- Extension would only be for four months
- "Has no doubt any notion of ultimatum will be withdrawn" in next few days
- Greece will pull a good agreement out of what seemed an impasse
Very confident words from Varoufakis despite the tough talk from his counterparts. I don't see any angle for him to talk like this only to walk away by the end of the week.
At the end of the day, he's right and it's only a 4 month extension -- no one wants to 'go nuclear' over that. The euro has bounced back to 1.1349 from as low as 1.1320 and it could continue to 1.1380 as nerves are soothed and liquidity returns.
Technically, the low of the day also corresponded to the uptrend since Jan 22and remained above Thursday's low. Those are both bullish signals.
