The next stage for Greece

19 June, 2015

Expectations were set very low going into yesterday’s meeting of Eurozone finance ministers and rightly so, with no agreement and nothing in sight. The next move is a higher level summit organised for Monday. The ECB also meets again today to discuss the solvency of the banking sector, with talk on the periphery of potentials issues arising next week. We’ve already seen substantial deposit outflows, with the doors being kept open by the (increasing) provision of emergency liquidity assistance (ELA). The reaction of the single currency could best be described as indifferent, coming off a little during the Asia session against the backdrop of a slightly firmer dollar.

The Bank of Japan meeting overnight was fairly routine in terms of policy initiatives, with an 8-1 vote for keeping things as they are. There were some changes to their framework, such as moving to 8 policy meetings a year, as we have in the U.S, as the ECB has taken on and the UK are also set to follow. It’s likely that we are going to see headlines surrounding Greece and the potential fall-out, especially in the banking sector, dominate today’s trading. We’ve also seen the Shanghai Composite come off from the recent highs, now down 11% from the peak. This is adding to the more cautious trading environment overall, with the reversal from the recent highs seen in both US and the Eurozone. That said, we are seeing peripheral bond markets (Spain, Italy) widen out against Germany, as a reflection of the concerns surrounding Greece.


Source link  
The precious metal has broken out

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then...

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...

  


Share: