Boye says markets now believe that a deal has moved much closer, but cautions that negative headlines could easily turn sentiment around. He adds several hurdles remain before Greece gets a new deal with its creditors.

The Greek parliament is due on Friday to vote on the proposals, which are very similar to previous plans rejected by Greek voters in a referendum on July 5th. Over the weekend the proposals will be discussed by euro area finance ministers before EU leaders meet on Sunday to decide on whether to give Greece a new bailout.

Part of the deal Greece is seeking involves restructuring some of its debt, which may meet opposition from the German Bundestag, which also has to vote on any new bailout for Greece.