D Day. Sort of. Greece will not be paying the IMF the little sum of money it owes, and so is in arrears. Lagarde of the IMF has up to 30 days to inform the board that default has occurred. Meanwhile the Greek prime minister has declared that Greece will not be ejected from the Euro because it would be too costly.
The impact of Greece beyond Greece was seen yesterday with the Swiss National Bank intervening in the foreign exchange markets to prevent too rapid an appreciation of the franc. Meanwhile assorted Euro finance ministers have been rushing to explain that their economies are not exposed to Greece.
Italian inflation is due out, and not especially noteworthy other than by highlighting that deflation was never a Euro area threat. German retail sales picked up in month over month terms – pertinent given the importance of domestic demand to Q1 growth.
US consumer confidence is expected to show strength, and the market consensus is also optimistic for the Chicago PMI of manufacturing sentiment.