After a day of seeking agreement from his government partners, Alexis Tsipras has finally submitted proposals for economic reforms to the Eurogroup chairman Jeroen Dijisselbloem.
The reforms are thought to include pension reforms and tax rises combined with spending cuts likely to exceed EUR12bn which amounts to more than those rejected in the referendum.
The plans will be reviewed over the weekend with Greece looking to finally reach an agreement which will allow banks to re-open and capital controls to be lifted. The EURUSD pair remained in a relatively tight range over the day, with the paid only falling around 40 pips on the day.
With the market open likely to be severely impacted by whether the proposals are accepted or not and warrant a new bailout we could see some large gaps and volatility on Monday morning.
Other significant news yesterday saw the Aussie dollar get a very short term boost as the unemployment rate was released at 6% compared to a forecast 6.1%. However having jumped over 20 pips on the release it only took 7 minutes for the price to fall below where it was pre-release perhaps as traders took note of the revision to the previous month’s data meaning last month wasn’t as good as thought.
China CPI was released at the same time slightly beating expectations at 1.4% but PPI fell by 4.8%, a worse read than the expected level.
Friday sees a quiet day heading into what could be a pivotal week for the Eurozone and Europe as a whole. The only significant release is the Canadian unemployment data at 15:30 GMT 3 with the rate expected to rise to 6.9%.
Janet Yellen will talk about the economic outlook late in the day, but by then all eyes will be on the weekend’s activities to come.