Despite ongoing negotiations over the past week, a significant gap still remains between Greece and its creditors, so much so that negotiations have entered a critical phase. Political pressure to reach an agreement by market opening on Monday remains intense, the lack of which would likely severely impact on sentiment.
A further meeting of eurozone finance ministers is scheduled for Saturday afternoon. Even with a successful conclusion to negotiations being reached over the weekend, the timetable remains extremely tight in order to ensure that the bailout programme is extended past Tuesday's deadline.
In the event of a successful conclusion to the Greek saga, market anxieties are likely to be eased and attention is expected to switch to the US and the likely timing of the first rate hike by the FOMC.
