The calm in the eye of the storm
- After the excitement of last week, a certain dullness seems to pervade the calendar. The Eurogroup of finance ministers meet, but nothing is expected from this. At some point the Greek situation needs to be addressed but there does not seem to be any urgency.
- Bullard of the Fed is speaking on monetary policy. However we have a pretty clear indication of where the Fed is going in the near term. The next task for the Fed is to manage expectations about 2016, with the market still below the FOMC forecasts.
- US consumer credit data is due. As the Fed's success as a central bank will ultimately be measured by inflation and control of credit bubbles, these numbers should never be entirely ignored. However they are not especially timely.
- China is about to take on leadership of the G20 and has suggested that perhaps some commodity markets should be priced in SDR (in other news, China is to join the SDR). The problem is that legislating what markets should do rarely works well (outside China).