Greece to possibly miss IMF loan repayment

Last week finally saw the pound’s post-election rally come to an end with the result being losses against EUR and USD. The UK also released the worst GDP figures for two years (0.3%), while inflation stayed put in the negative – staving off an inflation rate rise until at least 2016. There is more data out this week to make a meal of with manufacturing PMI today, construction and services PMI tomorrow and Wednesday – depending on which way the wind is blowing, GBP could either swim or sink somewhat. Thursday throws up the Monetary Policy Committee’s rate statement, along with the official bank rate and asset purchase facility.

In Europe, protracted discussion still continue with Greece and the eurozone’s powers that be over its credit situation – there is much talk amongst speculators (and, indeed, the IMF’s head) that the Greeks will not be able to make their repayment commitment to the IMF this Friday. Spain is also back in the limelight with its inflation rate remaining in the negative at -0.2%. This Friday, if Greece fail to make their required €300M payment, we could finally see the end of the road for the beleaguered nation and its membership to the Eurozone project. Wednesday will see the ECB’s interest rate decision and press conference that follows.

Across the pond, the dollar has had something of a rally off the back of renewed talk of an interest rate rise at some point this year. We also saw a CB consumer confidence survey last week which showed that trust in the States’ finances is stabilising. New home sales were also seen to improve, although unemployment numbers were seen to rise and preliminary GDP data dropped to by .7% to hit the worst level in a year. We’ll see some fundamental macroeconomic data out this week for the US, starting with manufacturing PMI figures today. Friday offers employment change data.