Greeks Are Bearing No Gifts
The start of the week sees a focus on familiar topics as Greece and its trouble with paying money back is stealing the majority of the headlines. We seem to have been near doomsday for a few months now and noises coming out of the IMF, ECB and Greece seem to show that an agreement is further away than ever.
Christine Lagarde from the IMF commented on how patience was running out with Syriza and that the honeymoon was over. The time for talking is coming to a close and it is now time for the Greeks to deliver and reach the objectives set between Greece and the International Community. Mario Draghi also seemed robust in his opinion that the Greeks need to be more forthcoming with a resolution to the ongoing issues. There was also optimism from Draghi that if there was a Grexit and if this were to lead to contagion then the ECB have the measures in place to cope with this.
For their part, Syriza are not bowing to any pressure and saying how “snap elections or a referendum are possible should negotiations with creditors stall”. It’s safe to say a deal is not looking overly likely at the moment!
The Pound is benefitting from a slight reversal of fortune at the moment with impressive employment data helping the positive move. This is on the back of five-year lows against the Dollar simply due to the UK economy not being seen to be as vibrant as the US economy. Of course, the General Election is still casting a huge shadow over Pound movements.
Today is relatively quiet data-wise with some minor construction data out of the Eurozone and the Chicago Fed National Activity Index being the main highlights.