More calls for Greek debt relief

17 July, 2015

The ECB has backed the IMF’s call for Greece debt to be written down and they join a growing number of influential voices calling for the same forgiveness, including the US and hard line German finance minister Wolfgang Schäuble. This puts a growing camp at odds with the Eurogroup who worked so hard to put together the bailout deal. Greek Prime Minister Tsipras must be tearing his hair out thinking that had he stuck to his guns and rejected the latest deal then he probably would have got the debt relief he wanted with the number of sympathisers growing by the day. What the latest developments do mean is that we most certainly have not heard the end of this saga as the problem is highly unlikely to go away. Greece’s debt mountain is so high that without any sort of concessions from creditors it is impossible to grow their way out of it. The euro has had a bad weak against the majors, in particular against sterling smashing through the 0.7000 level (or 1.4285 if you prefer GBPEUR) and is trading at 0.6945 (1.4390) this morning.

Today is quite quiet on the economic data front although there are US inflation figures due out which will be closely watched to see if Yellen’s hawkish stance at her two day semi-annual testimony is backed up by rising inflation. CPI is due to rise from 0.0% to 0.1%. After that there’s the Michigan Consumer Sentiment also expected to rise from 96.1 to 97.0.


Source link  
Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...

Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...


Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...

Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...


German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

  


Share: