Thursday, February 12, 2015

EU/Greece talks break up without even a statement

•       EU/Greece talks break up without even a statement
–      Some agreement was apparently reached, but after Greek Finance Minister Varoufakis consulted with officials in Athens, it was scrapped
–      No plans for any meetings before Monday’s deadline to extend the bailout program
–      Eurozone seems headed towards disaster, but EUR/USD was virtually unchanged!
•       US strengthened against most other currencies as more Fed officials weigh in in favor of raising rates
–      Dallas Fed President Fisher, St. Louis Fed President Bullard in favor of hiking
–      At least 4 Fed presidents have said so – a good cross section
•       AUD plunges on unexpected jump in unemployment
–      Sharp rise in unemployment in Jan raises likelihood of further rate cuts
–      AUD can fall further, in our view
•       Today:
–      Eurozone:  German final CPI for January
–      Sweden:  Riksbank meets; we see them introducing macroprudential measures and postponing next rate hike, rather than new easing measures; would be SEK-positive
–      UK:  Bank of England inflation report could warn of deflation = GBP-negative

–      US: January retail sales core figure expected to rise = USD-positive

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