Final print of Uk growth figures due

Today's Highlights

D-Day as Greeks appear to miss deadlne

Final print of Uk growth figures due

FX Market Overview

Who said that Foreign Exchange trading was easy? After the announcement of a snap referendum in Greece which saw the Euro plunge below 1.1000 on Sunday I doubt that anyone would have predicted that the single currency would rally over 300 pips to end the day close to 1.1300. Most analysts were dusting off their reports from a few months ago when they were all calling for parity. It is more likely than ever that the Greeks will now miss the €1.5bln payment to the IMF today. Apparently this is not technically a default but it will certainly increase the negativity which is weighing on the single currency. For now volatility will prevail as investors rush to cover euro funded positions which will support the currency , however as a the real possibility of a Grexit and the potential contagion that may bring gets priced into the market I would expect the Euro to continue to weaken. Today Eurozone inflation data should come in weaker although with the situation in Greece at the forefront of everyone's mind I doubt this will have much of an effect.

Reserve Bank of Australia Governor Stevens speaks today in London and if there is any indication that further interest rate cuts are on the table the Australian dollar could continue its recent slide. Although the Chinese eased policy over the w/e which allowed the Aussie to strengthen slightly most analysts do expect some loosening of policy from the RBA over the course of 2015 so this strength should be short lived.

In the UK we await the current account balance and the final reading of first quarter GDP. While this is backward looking data it will be closely watched as always and if the reading are revised higher than the last report Sterling could find some support in the short term.

This afternoon we get US data in the form of the Chicago PMI and consumer confidence which are both expected to show slight improvements however events in Greece will supersede any of the macro data as the world watches this game of chicken between the ECB and Greek Premier Tsiparis. The ECB is stuck between a rock and a hard place as it cannot give in to Greek demands and look weak and it also does not want to allow the Euro to fall apart by not showing solidarity with its weakest member by being the lender of last resort. It's difficult to see any rally in the euro being sustained in this environment.