Wednesday, March 4, 2015

Greece readies its proposals for the Eurogroup next Monday

     Greece readies its proposals for the Eurogroup next Monday
    Some are in line with their requests, like some revenue-raising measures
    But others aren’t, e.g. free electricity and the refusal to privatize the electric company and possibly bringing the banks under government control
    Greece is out of the headlines for now but still a risk factor for EUR

     Copper falls, showing the fading impact of China rate cut
    Rate cuts are lagging indicators – AUD and probably NZD to fall further as Chinese growth slows more

     US gasoline prices rising, adding to inflation expectations
    Inflation expectations push Fed funds rate expectations higher, supporting USD
    Gasoline rising due to issues with refineries, not higher crude

     Today:
    Eurozone: Final service-sector PMIs for February
    Canada:  Bank of Canada meets; not expected to cut rates, but a dovish statement could push USD/CAD back above 1.2500

    US: ADP report expected to show a rise in the number of jobs = USD-positive. Beige book released

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