Greece deal brings confidence back to markets

Press Release – CMC Markets

Despite a tepid start to the day the market has rallied higher in light volume as we saw Euro Finance ministers reach a deal to provide Greece with debt relief.

14.45 AEDT, Tuesday 27 November 2012

Greece deal brings confidence back to markets

By Ben Taylor (Sales Trader, CMC Markets)

Despite a tepid start to the day the market has rallied higher in light volume as we saw Euro Finance ministers reach a deal to provide Greece with debt relief.

The deal has brought confidence back into today’s markets. The Greek debt issue has been a hand break on the markets march higher. If Greece meets its pledge under the bailout plan it can now expect to receive its next tranche of payments which is positive for risk assets and currencies.

The Aussie dollar has been a beneficiary of the deal struck between the Eurozone and the IMF. A break above 1.05 is now expected in the coming days and could continue higher if the RBA holds at its next meeting.

While Congress has been on a break the US market has managed to sustain gains, however now that they are back at it the fiscal cliff talk will continue to be the main topic point.

Talk that the republicans are preparing to cave in on their “no tax hike” beliefs have the markets pricing that a resolution is near. If the compromise starts to fade we will see quick moves that reduce the current risk premiums in US markets.
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