- Moderate optimism headed into euro zone summit as a variety of plans are floated as possible solutions to Greece’s nagging debt crisis
- Germany: No agreement yet on ESFS bond buying or credit lines yet
- US existing home sales fall 0.8% in June
- Fitch affirms Finland at AAA; outlook stable
- ECB’s Bini-Smaghi: Greek restructuring would be a disaster
- Obama to meet with House Republicans at 20:00 GMT
- French foreign minister Juppe: Confident EU will find solution tomorrow; failure would be catastrophic
- FT says EU to propose EUR 50 bln bank levy to fund Greek debt bailout
- Gold rises $12 to $1600; WTI rises 0.64 to $98.14
- S&P 500 falls 0.1% to 1326
- US 10-yr note rises 6 bp in yield to 2.94%
Mostly a day of backing and filling in EUR/USD with a somewhat bullish bias on hopes a sustainable deal for Greek debt is done at tomorrow’s EU summit. 1.4167/1.4235 was the range with Asian buying interest rumored steadily on dips. 1.4240 remains resistance near-term with stops from shorts building just above the 1.4250.
Markets are in watchful waiting mode, looking for clarity from both Brussels and Washington. We will get news from Brussels tomorrow. Clarity may be too much to ask. Washington will likely offer us little of news or clarity in the near-term as negotiations drag on over the debt ceiling/deficit reduction.