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An overnight surge in the euro has ebbed as the morning has continued, as the full implications of the deal struck in Brussels last night begins to set in.
The warm words of eurozone politicians belie the scale of the cuts that Greece still needs to make if it is to bring its deficit under control. In addition, the assumptions about GDP growth that underpin the deal are wildly optimistic, suggesting a stunning turnaround in GDP in a country that has been mired in recession for five years now.
Still, we might just be seeing a 'buy the rumour, sell the fact' event in markets today, and with EUR/USD refusing at present to go below the €1.32 level in any meaningful fashion, buyers might start creeping in as the week continues.
