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The traditional Euro can-kicking display

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Greeks have got the next instalment of their funding, and in a spectacularly sophisticated show of kicking the can down the road debt relief will be considered – later. After everyone's elections. With nothing so vulgar as amounts of money being discussed.
  • At least debt relief is being talked of. This has been seen as a necessary condition by many economists, and the principle is out in the open – even if it is off the agenda until 2018. It means that Greece should move off the EU political agenda for now. Goodness knows, the political agenda is crowded enough anyway.
  • German business and consumer sentiment (ifo and GfK) are scheduled. Exporters may be inclined to complain about the Euro – a comparison of producer prices for exports inside and exports outside the Euro area shows that Euro strength is squeezing profits not.
  • There are Bank of England, ECB and US Federal Reserve speakers today – the three from the Fed are probably the only ones investors are likely to care about, as the Fed seems to be making a concerted effort to reshape market opinion and bring it back into line with economic reality.