Is this false hope? Germany softening its stance on restructuring demand is helping the EUR. While the market focuses its attention on the Germans, its the Greek’s ability to do or not do that we should be honing in on.

No demand of an early rescheduling of Greek bonds is certainly good news, paving the way for the Euro-zone to put together another rescue package to aid Greece in meeting its repayment objections over the next few months. However, this does not mean that an eventual restructuring of their debt will not go ahead.

What if Athens fails to keep up its end of the bargain? The need will become more urgent. The EU requires all party support in Greece and continue to press for ‘vigorous international supervision’, in other words, a greater say in how Greece is run.

The reality is that the Euro-zone will spend the next few weeks putting together another aid package to stave off restructuring while internally the Greeks will continue to drag their feet on introducing structural changes, then we are back to square one!

The US$ is weaker in the O/N trading session. Currently, it is lower against 13 of the 16 most actively traded currencies in a ‘volatile’ session.

Can this really be true?