Greece showdown approaching

10 February, 2015

At some point this week, we’re going to see the single currency break from the relative resilience we’ve seen so far in relation to events in Greece. The fact is that between the two pivotal players (Greece and Germany), there have been absolutely no sign of compromise. Greece has turned its back on the Trioka and is seeking EUR 10 bln of short-term funding to give it time to work something out, whilst Germany sees no need for such a move because there is nothing to be negotiated in their eyes. With the Eurozone, markets have gotten used to compromise and last minute deals, but on this issue, both sides find themselves with too much at stake domestically to stand down and both feel they have the more powerful hand. We have the G20 meeting of Finance Ministers today, with Eurozone Finance Ministers meeting tomorrow. If we see no tangible progress on Greece at the meeting this week, then the single currency will start looking more vulnerable.

Overnight, we’ve seen more falling inflation data, this time from China. Headline prices fell to 0.8% (from 1.5%), with PPI prices also falling further into negative territory. Along with several other central banks, we’ve already seen action from the Chinese central bank last week, with a reduction in the reserves ratio, the proportion of eligible liabilities banks are required to hold with the central bank. Elsewhere, we’re seeing the dollar hold relatively steady on the majors, but the euro is coming under pressure at the start of European trading.


Source link  
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...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...


Sterling Struggles Ahead of Theresa May's Speech

Theresa May will make a speech outlining her plans for Brexit tomorrow, Tuesday 17th Jan, before the UK triggers Article 50 to leave the EU...

Dollar Turn-around on Trump's Press Conference

President Elect Trump's first press conference after his victory in the US presidential election, was held yesterday around at 16:00 GMT. It has caused great volatility to the dollar and the markets...

Gold Nears Major Resistance Ahead of Trump’s Press Conference

Gold prices have rebounded since mid-Dec after testing the significant support line at 1120. On the 4 hourly chart, gold bullish momentum has been strengthened since the beginning of this year, helped by the dollar retracement...


Searching for a new narrative

Popcorn at the read today as President elect Trump has a scheduled news conference later in the day (around 16:00 GMT). Markets have become used to listening to him in 140 characters or less over the recent weeks, so a more elongated narrative should be welcome...

The sterling conundrum

Yesterday's early weakness in sterling, on the back of the latest comments from PM May surrounding Brexit, took cable close to key support levels and the resilience seen through most of the post US election period has been unwound...

Selling into USD strength

In summary, Friday US jobs report was pretty much in line with expectations, although the slightly better data on earnings gave some support to the dollar into the end of the week. As a result, the US currency was little changed from Tuesday opening levels...

  


Share: