EURUSD Rally Limited on Greece Resolution, US Equities Hit Record Highs

Talking Points:

• An immediate Euro-area crisis was avoided when officials agreed to a bailout extension with Greece

• The Euro gained traction but fell far short of a clear trend, while the S&P 500 hit a record high

• This week we need to keep track of Greece, EM fallout from a Russia downgrade, risk trends, and the Fed

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Optimism seems to have washed over the market into the close this past week with the Euro firming up while the S&P 500 scaled record highs after news of a Greek deal. Yet, where the market reaction was both reassuring and fitting, it lacked for conviction. For the Euro and European markets, Greece has avoided the financial cliff; but details are still unanswered and the plan for a lasting economic and financial recovery are still unresolved. For broader risk trends, an averted Greek crisis offers even less motivation for trend. We are seeing the same hallmarks of skepticism and short-term trading habits that we have been monitoring for months. Heading into the new trading week, the high profile catalysts thin out; but the themes that have driven trends these past months are further gaining traction. Risk trends, Europe's health, Emerging Market stability (after a Friday Russia downgrade), many monetary policy discussions and particularly Fed Chairwoman Yellen's testimony are the themes of the weekend Trading Video.

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