A huge moutain to climb

11 February, 2015

The Eurozone finance ministers meeting today to discuss Greece looks unlikely to result in a deal, so the best markets can hope for is some sign of progress because so far there have not been any of real substance. There were some rumours yesterday that there was a softening on the part of EU leaders towards a lengthening of the bailout agreement which expires at the end of this month, but as far as Greece is concerned, they want something new, rather than a revised version of what is already in place. So neither side can even agree on what needs to be negotiated, hence the limited chance of anything substantial falling into place today. This does put the single currency on a more vulnerable footing overall.

The Greece meeting comes later in the day, but there is little on the calendar to distract markets ahead of then. Overnight tonight there is some interest with labour market data in Australia, where the unemployment rate is seen rising up to 6.2% (from 6.1%). The ‘surprise’ easing from the RBA has put a renewed focus on the economy and the labour market has been a point of strength in the wider picture, so any signs of further than expected weakening could put the Aussie under renewed pressure. The oil exporting currencies, such as the NOK and RUB have done fairly well of late on the back of the oil price recovery, with the rouble around 5% firmer vs. levels prevailing before it unexpectedly cut rates, which has so far served as a good omen for some stability going forward. Finally, cable is likely to be subdued ahead of tomorrow’s Inflation Report, where further hints of interest rate policy going forward will be sought. We still see the BoE holding rates steady for the remainder of the year.


Source link  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: