Heading for showdown

9 February, 2015

As is stands, we are no nearer to seeing the way ahead with regards to Greece as European Finance Ministers gather this week to seek a way ahead on the issue. Greece appears as convinced as ever, judging by the PM’s speech yesterday, that it will not renew the bailout program when it expires at the end of this month and the Greek Fin Min could not even agree that he agreed to disagree with his German counterpart when they met last week. The volatility seen in Greek stocks (especially banks) and bond markets has reflected the ebb and flow of this position. The single currency has moved away from the recent highs on EURUSD, but so far the euro has not fallen out of bed on the back of events in Greece. Other peripheral markets have seen more volatility on their yield premium over Germany, but are far less concerned than was the case during previous phases of Greece tensions (back in 2010 and 2012).

Looking beyond events in Greece, we’ve seen overall levels of volatility in the FX markets remain elevated. This was pretty apparent after the strong US employment report on Friday, especially on USDJPY which pushed up around 1.5% higher in the wake of the release. Not surprisingly, the momentum towards a rate increase from the Fed this year increased as a result and supporting this has been the recovery in market-based inflation expectations measures, helped by the rise in the oil price over recent days. Sterling has also been pretty buoyant, holding above 1.52 on cable, with the commodity currencies (NZD and CAD). The Aussie remains the exception to this after the recent rate cut and indications of slower growth.


Source link  
Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...

Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...


Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

Will the French Presidential Election affect EUR?

The first round of the French presidential election...


USD Firms Ahead of Q4 GDP Final Reading

The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming...

Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

  


Share: