COIN FLIPPING CORNER: EU Open Report

martedì 14 luglio 2015

EU Open Report - 14.7.2015

So the EU has agreed to bailout Greece once more...and now it's up to the local politicians to pass the reforms. Kathimerini reported that Energy Minister Panayiotis Lafazanis, who heads SYRIZA’s Left Platform confirmed he would not vote for the legislation and he would not resign from the government either. Many others hold the same point of view.

USD is up across the board after yesterday’s developments in Europe, appreciating against the EUR and a range of other currencies. The Greek drama is not yet finished, but the removal of any near term Grexit Risk has proven USD supportive. Greece looks like less of a limitation for the Fed, so rising expectations on US interest rates can act as a lever for USD appreciation.

1. Who Said What

- Greek PM Tsipras faces party revolt over bailout deal – Reuters.

- IMF – Greece misses Eur 456 mln loan payment due yesterday, arrears now 2 bln Euros.

- Greece paid back Y11.7 bln of samurai bonds which matured yesterday – Reuters.

- UK June BRC like-for-like retail sales +1.8% y/y, May unch, total sales +2.9%, biggest rise since March, May +1.1%, sales strongest since January ’14.

- China June money supply M2 +11.8% y/y, CNY lending +13.4%, +11% and +14% eyed, end-June FX reserves $3.69 trln.

- Australia June NAB business conditions index +5 pts to 11, highest in 8-months business confidence index +2 pts to 10, highest since September ‘13.

2. Calendar