Forex Weekly Round Up 17 August 2015 – 21 August 2015

German Chancellor Angela Merkel said that there is clarity there cannot be a Greek debt haircut but added there’s room for an extension of Greek debt maturities.

The German parliament approved a third bailout for Greece on Wednesday after Finance Minister Wolfgang Schaeuble said the country should get a new start. The Bundestag vote cleared one of the final obstacles to Greece getting funding so that it could make a 3.2 billion-euro (£2.3 billion) debt repayment to the European Central Bank on Thursday.

Greek Prime Minister Alexis Tsipras resigned, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece’s creditors for a better bailout deal but had to cave in.

Tsipras submitted his resignation to President Prokopis Pavlopoulos and asked for the earliest possible election date, which is expected to be the 20th of September.

The pound hit a 7-week high yesterday against the dollar after an unexpectedly strong inflation report boosted the currency. The Consumer Prices Index grew by 0.1% which is better than forecast and up from 0.0% in June.

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