FXstreet.com (Barcelona) - The recent optimism in financial markets continued on Tuesday, with the dollar selling off versus most risk currencies and the euro. CDU budget lawmaker Barthle, in an interview with Bloomberg, said "small concessions" are possible for Greece, suggesting that the loan interest and maturity could be adjusted, which would likely pass in the Bundestag.
According to Research Analyst Chris Walker at UBS, “There are mounting indications that Germany may once again give in and offer some form of concessions to allow the Greek programme to continue running, though we caution that these concessions will certainly have their limits.”
This positive backdrop for the euro should continue throughout the week, however, as the Samaras meetings tomorrow with Juncker and then with Merkel and Hollande will likely reinforce the message that Greece will be allowed back on track. Ultimately, German Foreign Minister Westerwelle noted that the German government could not agree to a "substantial" softening of Greece's bailout terms. He added that a decision on extending further aid to Greece would be taken after the Troika's report in September.
According to Research Analyst Chris Walker at UBS, “There are mounting indications that Germany may once again give in and offer some form of concessions to allow the Greek programme to continue running, though we caution that these concessions will certainly have their limits.”
This positive backdrop for the euro should continue throughout the week, however, as the Samaras meetings tomorrow with Juncker and then with Merkel and Hollande will likely reinforce the message that Greece will be allowed back on track. Ultimately, German Foreign Minister Westerwelle noted that the German government could not agree to a "substantial" softening of Greece's bailout terms. He added that a decision on extending further aid to Greece would be taken after the Troika's report in September.
