Greek deal on- deal off weighs heavy on markets

Traders all over the world remains edgy as Greece and Euro zone policymakers move between Deal on/Deal off sentiment.

• Market is still hoping for a last minute rescue resolution, however mood has soured completely. Moreover after crushing of hope twice market participants are now cautious.
  
  
• This might lead to no relief rally even if a resolution gets reached.

Euro -

• Euro is currently trading at 1.12 against dollar. Might move up if a deal is reached, however likely to meet sellers around 1.132 and 1.145 area.

European stocks -

• European stocks are likely to remain buoyant as European Central Bank (ECB) keeps printing money, however stock might see selloffs a deal is not reached. Buyers likely to remain active and stand ready to buy at dips. European stock index Eurostxx50 is currently trading at 3610, up 0.5% today so far. German DAX is currently trading at 11490, up 0.17% today.

Euro zone bonds -

• Bonds of peripheral countries remain at high risk of contagion, if Greece fails to secure a deal. However selloffs might not find longer follow through as Greece is more of sentimental threat than economic one. Spanish 10 year is currently trading at 2.14% and Italy at 2.15% and Portal at 2.77% whereas Greece is currently trading at 10.2%.