08/02/2017 - Forbes Hints At Rate Rise Vote

GBP

The Pound received some support yesterday afternoon by Bank of England policymaker Kristin Forbes who suggested she is getting closer to voting for a rate rise to stop inflation rising too high.

Forbes spoke at a conference in Leeds and said the economy had outperformed gloomy post-referendum expectations and continued to hold up well. She added that an increase in interest rates, however, given today’s extremely low level of Bank Rate, and the substantial amount of monetary stimulus that is already in place through a variety of programs, would still leave a substantial amount of monetary support for the economy”.

EUR

Greece returned to the headlines yesterday morning on news of disagreements between Greece, their European lenders and the International Monetary Fund on the country's bailout obligations. Months of disagreements persist over fiscal issues, labour and energy market reforms.

Greece are hoping for positive news on a bailout review which would allow it to tap cheap ECB funding, as a top European official ruled out imminently extending debt relief sought by the IMF for the crisis-hit nation.

The IMF has sat on the periphery of the bailout programme, Greece's third since the crisis of 2010. The Fund says it cannot participate in a programme which could keep Greece in a perpetual cycle of indebtedness that could push national borrowing to 275 percent of economic output by 2060. Germany has said the present programme, which started in mid-2015 and is worth up to 86 billion euros, could end if the IMF does not participate.

Key Announcements

15:30 – USD – Crude Oil Inventories is expected to decrease to 2.7M