Richard Perry
Independent Analyst
So after six hours of talks with the Eurogroup of EU finance ministers, Greek finance minister Yanis Varoufakis was unable to come to an agreement over the repayment of it debt. The suggestion of a bridging loan by the Greeks was rejected and a 6 month extension offered by the Eurogroup is equally unacceptable for Varoufakis. So the talks now switch to Monday where they will do it all again. Financial markets that have been waiting with baited breath for developments will have to wait that little bit longer. Wall Street closed basically flat, whilst Asian markets were . The European trading session has also started on a mixed note lacking direction.
In forex trading, the euro has become flat-lined whilst sterling has also been unable to find direction. The Australian dollar has come under considerable downside pressure after unemployment figures disappointed overnight, which has also dragged the Kiwi lower too. The Bank of England’s Quarterly Inflation Report is the major economic event of the day, with its release at 1030GMT.This is where the BoE updates on its expectations of inflation and growth. The market will be interested to see whether the continued improvement in unemployment and wage growth will impact on the Bank’s figures. A slight hawkish shift is the risk (this is my expectation and also one of the reasons why sterling has held up so well recently) which would benefit sterling.
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