- Eurogroup’s Juncker: Greece must make more effort on its deficit. We discussed issue of aid in Greece. Greece must understand other EU citizens not prepared to pay for their mistakes. Greece must act or face possibility of sanctions
- French FinMin: Implementation of Greek deficit cutting plan now most important thing
- Spanish FinMin: Greece has full EU support, but no details on aid. Confident Greece will meet fiscal obligations
- Austrian FinMin: Will not let up pressure on Greece
- UK January CPI -0.2% m/m, +3.5% y/y, highest y/y rate since November 2008, forces BOE letter to Chancellor. But not as bad as some had feared
- UK house prices up +2.9% y/y in December – DCLG
- ZEW institute February German economic sentiment index 45.1 vs 47.2 in January, down but not as bad as 42.0 median forecast
- Greek/German 10year government bond yield spread expands 30 bps on day to 335, widest in one week
- Greek 5year CDS rate rises to 369.8 bps from 354.3 bps at NYK close Monday
- BOE’s King: CPI rise to be temporary, to fall back to target in H2 due to spare capacity. CPI rise due to VAT, oil prices, weak sterling. Likely to be high for next few months
Boy, that was painful. EUR/USD sits at 1.3645, effectively unchanged from where it was 7 hours ago. Early short-covering rally topped out at 1.3682, euro bulls lacking conviction to take on well-tipped sell orders up at 1.3690/00. Can’t really blame them, what with the Greece situation festering away in the background. Buy orders tipped at 1.3585 and more at 1.3550/60.
Cable touch lower at 1.5690 from early 1.5705. Early rally floundered around 1.5730, market again unwilling to take on well-tipped sell orders at 1.5740/50. Strong buy interest remains down at 1.5550/60, stops just below.
USD/JPY unchanged at 89.95. Buy orders 89.50/60 stops just below. Sell orders 90.00/10.
