Sterling Nears 4 Week High

The main sticking point remains the desire of many members to enjoy shared sovereign debt liability via Euro bonds, and the absolute refusal by German Chancellor Angela Merkel to even consider the idea. It was reported that behind closed doors Merkel told lawmakers that bonds “would not be considered in her lifetime” – seems fairly definitive to me.

So while the leaders will meet and discuss the vision being put forward by some of the members, it seems highly unlikely any flesh will be put on the bones of any agreement before October, leaving the Euro crisis to simply rumble on, together with the associated uncertainty.

The only real data of note today is German inflation figures out mid morning but with expectations of a simple drop of 0.1% due to oil prices dropping, don’t expect much reaction to this. Uncertainty remains the key, so if you have a currency requirement make sure you stay in close touch with your Currency Index account manager during these turbulent times.

The British enjoyed remarkable success at the Wimbledon Championships yesterday with a total of 5 Britons through to the second round. However European focus moves back to the Euro 2012 Championships, with the first of the semi finals – Spain v Portugal – tonight in Donetsk. In the battle of two of Europe’s flakiest economies, Spain are clear favourites as both European and World champions, but don’t rule out the Portuguese, as the last time these two met, back in 2010, Portugal won comfortably 4-0. Whatever happens it will certainly be a Euro affair, with the only question being Paella or Piri-Piri chicken at the celebratory banquet!