Aussie employment improves marginally

Today's Highlights

China bans share selling

Aussie employment improves marginally

BOE decision won't move the Pound

FX Market Overview

Chancellor George Osborne delivered the first fully Tory budget in two decades yesterday and, as with anything political, it was received with mixed reactions. The Pound shrugged it off as it was largely fiscally balanced. The Pound will probably also shrug off today's Bank of England interest rate decision because nothing is going to change and the BOE doesn't issue statements unless something changes.

We get Greek unemployment and inflation data today. With 25.6% unemployment and deflation of 1.4%, Greece's economy is in a bad way. The EU is expecting a new proposal from the Greek government today upon which they can decide before Sunday's EU wide meeting. It's make or break time for Greece's membership of the Euro sharing bloc and it doesn't look good. I wish they would decide; I'm off to Cephalonia in September. Do I buy Euros or New Drachma? I jest of course; because, even if Greece opts to leave or is pushed out of the Euro, it will take months of reorganisation and printing to get ready for a new currency and then there is the matter of how to fund the economy if the country is virtually bankrupt. We live in interesting times and that means volatile times as well.

We heard overnight that Australian employment rose marginally last month but the effect on the Australian Dollar has been muted. I guess traders are far more concerned over events in China where it is currently illegal to sell shares; an attempt by the government to stop the 30% fall in share prices this month. With all of these sorts of interventions, they generally only delay the inevitable, so there will be a massive pent up demand amongst short sellers. Woe betide the Chinese stock market if that is ever relaxed.

The rest of the day is relatively quite from a data perspective. That'll give everyone time to berate or congratulate the chancellor, to watch some tennis and to fight their way to and fro across London where the Tube drivers are striking. And by that, I don't mean they are remarkably attractive, just that they are refusing to work due to plans to make the service run at night and at weekends. I am sure you have your own point of view on that but most Londoners are not impressed.

Have a great day.