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Is a Euro today worth a Euro tomorrow?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Greco-German crisis in 45 seconds. Things are getting more bad tempered (apparently that is possible). The Euro heads of government are to meet on Monday (no rush, obviously). Any deal could not get money to Greece in time for this month's payments.
  • Power is shifting from politicians to the people. The question the people will start to ask is "is a Euro in my bank today going to be worth a Euro tomorrow?". There are reports that the ECB is to hold an emergency meeting on the ELA support for Greek banks today.
  • The US has little to distract us from the Euro area, unfortunately. Williams and Mester of the Fed speak in the wake of the FOMC decision and a consumer price inflation figure that for once did not surprise on the upside.
  • The Bank of Japan did not change policy, which surprised no one (Kuroda's confusion over the yen was not really clarified). However the BoJ did announce that it will be reducing the number of meetings and publishing individual members' forecasts in the future.