Greek bailout talks break down in Brussels

Thursday, February 12, 2015

Following an extended Euro-group meeting which lasted 6 hours and amid conflicting briefings, there was confirmation that no agreement has been reached between Greece and the other European leaders. Eurozone’s finance ministers were not even able to agree a way to take negotiations forward, while investors await further clarification from the upcoming crucial Euro-group meeting on Monday. The euro hovered around 1.13 against the USD struggling for direction, while the European equity markets opened fairly mixed this morning.   

EURUSD held around 1.13

EURUSD Curncy (EUR-USD X-RATE)   2015-02-11 16-05-01

The UK RICS housing market survey showed that house prices in England and Wales rose 7% in January missing expectations of a 12% increase. Investors will be watching the Bank of England’s inflation report later today, which will give further direction to the sterling. GBP edged higher against the USD hovering around 1.525 and held above 1.34 against the euro in early trade this morning.

GBPUSD hovered around 1.52

GBPUSD Curncy (GBP-USD X-RATE)   2015-02-12 08-59-24

Asian equity markets rallied overnight. The Hang Seng index gained 0.44% towards 24,450 and the Nikkei surged over 320 points (+1.85%) towards 18,000. This morning, the IMF decided to extend $17.5 billion funding facility to Ukraine.

Gold climbed higher towards $1,230/ounce in early trade this morning , acting as safe haven due to the ongoing uncertainty regarding the Greek debt crisis. Platinum and palladium extended gains, while silver hovered around $16.80.

XAU- Gold climbed higher eyeing $1,230/ounce

XAU Curncy (Gold Spot   $_Oz )  2015-02-12 09-00-30

Crude oil prices rebounded and climbed higher this morning as WTI front month futures gained over 2% to retest the key level of $50/barrel, while Brent front month futures rallied above $55/barrel. Following confirmation from the latest DOE oil report, crude oil inventories continue to build sharply after increasing 4.86 million barrels for the week ending 6th Feb.

 

Events for today:

 

0001

UK

Jan

RICS House Prices

0700

DE

Jan

CPI

1000

EZ

Dec

Industrial Production

1030

UK

Feb

BoE Inflation Report

1330

US

Jan

Retail Sales

1330

US

w/e

Jobless Claims

1500

US

Dec

Business Inventories

 

All times UK Local Time

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