Afternoon Report: 18.00
- The euro pressure increased today after members of the Greek government resigned in protest of the austerity measures. This comes amid a backdrop of protests in Athens and a 48 hour general strike. The sticking points are relatively minor in relation to the size of the bailout required and even now, analysts expect the deal to be past. What is disconcerting is how it highlights the fragile nature of Greek politics. Promises and deals made today may not be acted on tomorrow, which is exactly why the IMF/ EU are taking such a hard line this time.
- The euro is down, but hasn’t fallen off a cliff which implies alarm rather than outright panic. The EUR/ USD is down 0.72% with the EUR/ JPY down 0.81%
- The Aussie dollar remains the biggest faller, with the AUD/ USD down 0.98% and the AUD/ JPY down over 1%.
- On stock markets, the Dow Jones is set for its biggest daily loss in 2012, but that tells you more about how unusually strong the rally has been so far than it does about today’s action.
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