Greece remains an issue

The German Dax was unimpressed by the turbulence. The Greek stock market is also falling.

As expected considerable losses were recorded when trading opened yesterday for the first time after five weeks of closures. Once again it became apparent though that the potential for contagion on the financial markets is limited. 

"The euro will not come under pressure either once the negotiations about an aid programme become fast paced again over the coming weeks", says Comerzbank.

On 20th August the next repayment of ECB loans is due. So Greece will have to receive money by then, either from an aid package or another bridging loan. However past experience shows that the risk of a Grexit is not reflected directly in EUR exchange rates but on the options market. 

"So there is a lot to suggest that the EUR-USD risk reversals will once again come under pressure once 20th August approaches and no final agreement has been reached", says Commerzbank.