Wednesday, February 18, 2015

Will Greece compromise ?

       Greece offers half a compromise
      Agrees to request a 6-month extension to its loan agreement
      BUT it still refused to accept the conditions that go along with the loan, and instead is submitting legislation that would overturn some of parts of the reform program
      This is similar to the EC compromise, which the Eurogroup already rejected
      EUR stronger, JPY & CHF weaker on the news – but I think this is wrong

       BoJ keeps policy steady, more upbeat on economy
      Says “inflation expectations a’’ear to be rising” but I can’t find evidence of this
      Wait for Gov. Kuroda’s press conference to hear comments on yen & confidence

       Today:
      Eurozone:  Eurogroup response to Greek proposal will be key. Also ECB non-monetary meeting to discuss emergency liquidity assistance to Greece
      UK:  Unemployment rate for Dec & minutes from BoE Feb meeting

      US: FOMC releases minutes of Jan meeting. Watch for comments on when they may start normalizing policy, or even just remove the word “patient” from the statement

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