Greek debt finance moves a step closer
12 November, 2012
Last week saw the Pound finish with a downward movement, despite the good news on Thursday that the Bank of England would not be extending its Quantitative Easing for the time being. Since QE dilutes the value of sterling, the decision not to extend did improve exchange rates which peaked again on Thursday, but Friday quickly saw sterling fall back despite more good data showing the UK trade balance narrowed ahead of expectations.
The problem, particularly for Euro rates, has been the Greek ratification of the austerity budget for 2013, paving the way for vital emergency loans from the Eurozone. The Euro has been strengthening as the loan package finally looks like being agreed, although the first tranche will not be made just yet, as Eurozone ministers need to agree a sustainable repayment schedule. The Eurogroup meeting today will be discussing the next steps.
This week we also have a lot of UK data out, as many of the major releases for November are due. All of these can potentially move exchange rates when they are released: monthly inflation figures on Tuesday (9.30), unemployment on Wednesday (9.30), and the quarterly inflation report on Wednesday at 10am. There is also a lot of data out in the Eurozone and USA, so if you would like to be kept updated with the latest currency news and rates, contact us at Currency Index today.
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