Tuesday, February 17, 2015

Greek talks end with no agreement

     Greek talks end with no agreement
    EU Commission presented an OK proposal, but finance ministers rejected it
    Talks could reconvene on Friday

     FX market takes the news calmly
    EUR/USD lower, but no big deal; day’s range was average
    Greek stock market isn’t so certain, though

     What options does Greece have?
    Accept renewal of current program, perhaps with some face-saving tweaks, adjustments and changes of name
    Get the money from Russia or China
    Issue IOUs while negotiating
    I expect #1, but there are political obstacles on both sides

     Today:
    Eurozone: German ZEW survey forecast to rise, confirming rebound in Germany
    UK:  CPI inflation likely to slow, but this is as expected

    US: Empire State manufacturing survey expected to increase; NAHB housing market index to improve = USD-bullish

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