The market is rejoicing because more than 75% of investors in Greek debt are willing to take 26-cents on the dollar rather than get completely wiped out by a bankrupt government.
I don’t see any other good news in the eurozone pipeline. Stock market sentiment might continue to improve but the US dollar should keep pace with the euro on good employment news.
Meanwhile, sorting out the PSI and the international bondholders will be a mess. CDS will be tripped and France is going to punt Sarkozy in the first week of May.
Fresh stops are said to loom just below spot at 1.3260 with bids around 1.3228.
Technically, however, I can see EUR/USD moving a bit higher — up to 1.3300/50 — before it starts to run out of steam.
