Still no agreement on Greece bailout

A Grexit was avoided for now and it appears that expectations of the parliament approving the legislation are high. Elsewhere it was stressed that there are ways to keep the banking system supported in the short-term. All of the above suggests that risk sentiment and the EUR are likely to remain stable in the very short-term. 

The EUR has been well supported, regardless of officials failing to agree on another bailout for Greece. Although negotiations continue, the latest news flow suggests that the country was given an extended three day deadline to meet aid conditions, which shall be passed into law in order to set the base for further aid.

"From a broader angle, however, the currency should be sold on rallies, for instance against the USD. This is mainly due to the notion that investors' focus will shift back to monetary policy prospects as a key currency driver", says Credit Agricole.

While the ECB is unlikely turning less dovish anytime soon, the Fed should remain on track with considering higher rates in September.