Traders have many other elements to focus today rather than keeping their nerves on any further development in Greece after the country has accepted the creditor’s deal- in principal. Although, much of this depends if such a failure of Mr Tsipras government’s act will get sufficient voting in the parliament, when this will be put to test tomorrow. The likely outcome is not as certain, it can swing either way and the labor of countless number of nights, which has made the two parties to come to terms, could once again be back to square one, if there is no support in the Greek parliament.
Ms Merkel, the German chancellor, admitted yesterday that the Greek saga massively impacted the economic engine of Europe. However, as the deal is now finalised, she expects that the growth in the euro region will pick up once again with Germany being the leader once again.
We have today’s important piece of economic data which is the German ZEW economic sentiment. This is always considered as one of the leading economic indicator and in the past few months, the print has not been very encouraging. The forecast for today is again for a weak number as the Greek saga does have the last piece of puzzle unresolved and if not concluded according to the deal term, we will face the very same uncertainty once again. The forecast is for 30 while the previous reading as at 31.5
On other important headlines this morning is the news on the nuclear deal achieved between Iran and the world powers. The deal has tremendous importance for Iran, which has been crippled under sanctions for years and now the picture does certainly look rosy for the country and there is a strong probability that the country will be able to develop its strong foundation once again. Although, it may take a certain amount of time to become fully equipped with an ability to produce oil at its optimum level, but, Iran does have a significant amount of oil in their reserve which is ready to hit the market. This is like a plane on the runway ready to take off. Therefore, it will only add to the oil glut on the market and increase selling pressure.