The European Central Bank heaped pressure on Greece’s new government by restricting access to its direct liquidity lines, citing concerns about the country’s commitment to existing bailout pledges. This means that Athens’ own central bank must finance the country’s lenders, isolating Greece from the rest of the Eurozone bloc.
The decision marks an escalating stand-off between Greek politicians and other officials in the euro area. It came hours after new Greek Finance Minister Yanis Varoufakis met ECB President Mario Draghi to garner support for his government’s plans to tear up its 240 billion-euro ($272 billion) rescue package and renegotiate the nation’s debt.
Good news in the Eurozone’s service sector as it is growing at its fastest rate in six months. Markit’s monthly PMI survey shows that activity in the Eurozone picked up pace in January, marking a positive start to 2015. However, France was the big disappointment; the only member of the Big Four economies not to post growth
The UK’s dominant service sector picked up according to data yesterday. The PMI index climbed to 57.2 in January from Decembers 55.8 reading. As the service sector makes up 79% of the UK’s output, the boost to the service sector should end any fears of a lull in the UK economic growth. Meanwhile, the UK’s growth slowed in the final 3 months of 2014. The quarterly growth rate in GDP slipped to 0.5%, down from the previous 3 months of 0.7%.
The US Dollar weakened yesterday on the back of worse than expected ADP Employment change figures. The reading was expected to come in at 225k but fell short at 213k. These figures also give a good indication of where Friday's Non-Farm Payrolls may come in at so we could see more USD weakness on Friday if it comes in line with the fall in ADP Employment.
EUR - 10:00 : European Commission Releases Economic Growth Forecasts
GBP- 12:00 : Bank of England Interest rate decision expected to remain unchanged at 0.5%
USD- 13:30 : Continuing Jobless Claims expected to come in at 2.395M f
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