While there is nothing specific flooding over the newswires, there is some talk, once again, of progress toward an agreement between Greece and the PSI group. There is no reason to suggest this is any more certain than the previous rumors today, and/or the talk last Friday. The story seems to be never ending. But, cynical or not, EUR/USD and GBP/USD have jumped in the last 30 mins in response to yet another rumor. The intraday high on EUR/USD of 1.3160 has not been threatened. GBP/USD is just being dragged along as dealers mark prices up to avoid getting principally involved. The market is on edge and it will not take much in the way of rumors, events and/or order flows to spark a significant move in either direction. But, the moves are likely to be very narrowly based and price discovery will be spurious
