An about face from Greece, or saving face?
The GBPEUR didn’t have much to show for all the underlying tensions surrounding the Greek situation, spending the majority of the day trading around the same figure and with only minor fluctuations throughout. Against the greenback, however, the Pound lost ground steadily all day losing around a cent by the end of the day.
Greek Prime Minister, Alexis Tsipras, cannot be said to be uninteresting. In an abrupt turnaround from his letter to creditors around a day ago, he has now been right back to fight mode in a speech on television claiming that Greece was being blackmailed and persuading the nation to vote ‘No’ on the referendum to decide whether or not to agree to the terms set out to affect their bailout.
Away from these main headlines, much social manoeuvring is taking place with Greeks flocking to Australia, and a particularly sensitive issue is developing from the pensioners that were so central to Tsipras’ party in coming to power. The banks have been ordered to open in order to provide a limited amount of Euros to pensioners, but many have been left to stand in line only to be told that there is no money for them.
The UK has produced its lowest annual house price growth in two years according to this morning’s Nationwide figures. In general terms, this has been the trend for around a year now. An interesting point to note from these figures is that, while house prices are still outpacing earnings, we have seen a rise lately in wages which has brought the two closer together.
Today we have some good data due out including, UK Purchasing Manager Index for construction, which is forecast for a slight improvement. We look to the Eurozone Producer Price Index which is predicted to recover slightly on a yearly basis but contract on a month on month basis. The ECB will be meeting to discuss monetary policy today also. The US jobs data is due today as well in the form of unemployment data and non-farm payrolls, both of which should have material impact on the course of their currency.