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  
All Focus on US inflation data

The USD has weakened further overnight as the market awaits important US Data at 13:30 GMT. USDJPY broke down under 107.000, while...

Central Bank speakers start a quiet week

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy...

Equities Face a Nervous Session

The global equity markets are bracing themselves for a stormy closing session this week, as data from Thomson Reuters Lipper unit shows US fund...


Super Thursday for the Bank of England

The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement...

US Nonfarm Payrolls Today

Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer...

Australian Dollar drops after soft data

The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on...


Trump Supports a Strong Dollar

Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos...

A Weaker Dollar is Good for the US

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross...

U.S. Government Shuts Down

The U.S. government shutdown over the weekend as the Senate failed to pass a bill to keep the funds flowing late on Friday. The Democrats are making...

  


Share: