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Greece discussion, and Anglo-Saxon testimony

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  • Today the Greeks make the next move in the German crisis of the Euro area, with their reform proposals being discussed on a conference call of Euro area finance ministers. Of course, the Greek government will need to retain the support of a majority in parliament and that may be the key issue.
  • German final Q4 GDP is released by not really a market focus. Harmonised Euro area consumer price inflation is also due, but the direct relevance for policy is offset by the fact that the policy path is predetermined out to September 2016. However, lower relative prices (which is what the Euro has) are growth positive.
  • The Bank of England governor will be testifying to the Treasury Select Committee, and is expected to continue to give a slightly hawkish tinge to his comments. There is likely to be a lot of political grandstanding from MPs so close to the election.
  • Fed Chair Yellen gives her semi-annual testimony to Congress (the Senate today). This is supposed to reflect the views of the FOMC as a whole, which may be tricky as the FOMC is clearly divided. We also have consumer confidence data, although as today's Macro Keys highlights this requires increasing caution in interpretation.