Euro summit updates hint prolonged Greek debt saga, EUR eyes gains

What has been learnt from this weekend's meet on Greek debt? Typically, that trust once lost, is not easily regained. It seems quite clearly that not all the other Euro zone countries' governments want Greece to remain in the club and get euro fragile. The recent Euro Summit has carried a compromise message to Greece, seeking for more commitments in return for funding and offering the incentives of a temporary exit from the Euro Area in return for a discussion of debt relief.

Believe it or not, instead of kicking the Greek debt can down the road, the discussion about whether or not to kick the can has itself been kicked down the road for 72 hours instead. The sad thing is that the absurdity can't hide the awful economic reality that is imposed on the Greek economy; it's going backwards every day this goes on.

On the back of this news, we perceive this as a booster for euro's strength but skeptism also lingers as Greece in need of an infusion of 22 billion euro to repay its bills through the end of August, Maltese Finance Minister Edward Scicluna said. We think the underlying fact is crystal clear and it can't override on irrespective of aids proposed by ECB or euro group.

So, for euro, it may experience gains but we reckon it's sustenance in a long run is a bit puzzled. Speculators make get benefitted from the latest news by buying in intraday swing trades but certainly hedgers should not see this as opportunity.