With Greece still in the headlines, the Bank of England’s Monetary Policy Committee will today get an opportunity to wrestle a bit of the spotlight away from Athens as it releases its minutes from this month’s meeting. Of course, this is the last meeting before the General Election on 7th May and so the last time we will see their comments under this current Government.
Whilst it is expected that they are likely to show a unanimous vote against raising interest rates or changing its asset purchases, the markets will look closely for any comments from the MPC regarding the appreciation of Sterling.
Greece and the ECB, IMF and European Commission appear to still be at loggerheads over where the future lies. The ECB is in a bit of a pickle with Greece as it currently holds a significant amount of Greek debt on its balance sheet and although it may not want to contribute to the Greek debt, it needs to pile pressure on Greece to reach an agreement with its lenders.
In Australia, inflation numbers came in at a better than expected level which has shifted the belief that an interest rate cut was inevitable next month. It shows that things have started to improve for the first time since Q2 2014 and the necessity for action by the Reserve Bank of Australia is not as urgent as previously thought.
Apart from MPC minutes, we also have housing price index from the US this afternoon.
Posted in Daily Market News on Apr 22 2015
Although GBP is indeed looking very positive against the Euro, breaking above 1.3930 at time of writing, the USD has fought its way back to the mid 1.48’s. Sterling has undoubtedly been depressed due to the impending election/political uncertainty, perhaps we would be comfortably above 1.4000 on GBP/EUR if the...VIEW FULL ARTICLE
Posted in Daily Market News on Apr 21 2015 by Alex Coates