The pound consolidated against the broadly stronger euro as European leaders approved second bailout package for Greece. Sterling remained relatively flat against the dollar before January public finance figures are released today at 9:30. January is a key month for income tax receipts and the market consensus is calling for a PSNBx (public sector net borrowing excluding financial interventions) to be at –6.3 billion pounds and PSNCR at –24.7 billion pounds. Separately, MPC member Charles Bean is scheduled to speak to the Scottish Council for Development and Industry at 19:30. Expect for the pound to remain in current ranges should we see economic data coming out in line with expectations.
The euro jumped against the dollar and the pound during overnight trade after European Leaders agreed to give second bailout package to Greece. Finance ministers awarded Greek Government with 130 billion euro in aid and forced the private bondholders to take larger loses than they accepted last month. Luxembourg PM Jean Claude Juncker said the deal includes a 53.5% write-down for investors in Greek bonds. Looking ahead to today, Eurozone Consumer Confidence figures headline the economic calendar with the expectations for the February reading to improve slightly from previous month.
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