Greece in the Spotlight as Last-Ditch Debt Deal Talks Continue

Greece remains in the spotlight as Eurozone finance ministers gather for yet another meeting in a last-ditch effort to hammer out a funding deal.

Talking Points:

• Greece Debt Talks in Focus as Eurozone FinMins Gather for Another Meeting

• Euro Gains on Deal Between Greece, Creditors May Not Have Follow-Through

• See Economic Releases Directly on Your Charts with the DailyFX News App

A quiet economic calendar in European hours will keep Greece in the spotlight as Eurozone finance ministers struggle to secure a deal between the country and its creditors. Hopes were running high early in the week after Athens submitted an updated set of proposed reforms meant to unlock a tranche of bailout funding. Traction has failed to materialize thus far however.

Markets fear that failure to overcome the impasse may lead to a Greek default and push the country out of the Eurozone, triggering as-yet unknown consequences for the currency bloc and the world economy at large. With that in mind, traders are anxiously awaiting confirmed signs of a breakthrough or a final collapse of negotiations without further room to maneuver.

If the former proves true, the Euro may see near-term gains amid ebbing uncertainty risk. Risk appetite may likewise find support, boosting higher-yielding currencies (notably in the commodity FX complex) while weighing on the safety-linked Japanese Yen. Follow-though may be limited however considering the markets’ priced-in outlook seems to favor an eventual agreement. Needless to say, a disappointment stands to yield the opposite results.