Daily Market Report 23/11/12

Greek hope continues to enforce the euro

Meeting for the second day today, European leaders will once again be locked in discussion over the EU’s next seven-year budget. Yesterday after several hours of meetings, leaders were unable to reach an agreement over the proposed $973bn budget, as the rift between rich and poor countries made itself apparent.

This morning the German business climate figure has returned much more positive than anticipated. Forecast to show a decline, the surprise increase has proved to be a much welcomed boost to the economic outlook, which had previously been assumed drab.

The immediate effect seen this morning has been an extension of the euro strength of the last few days. Heavily buoyed by the belief that Greece will secure its third tranche of bailout funds next week, investors have been seeking higher return in the riskier currencies such as the euro instead of the safer dollar.

Suggestions that the EU Summit will not come to a decision until their next scheduled meeting has not yet reared its disappointment in the euro, however if the current trend continues, the frustration will be overlooked for hopeful action on Greece next week.

 

Key Announcements Today:
  • 09.00am – EUR – German Business Climate: expected below 100 at 99.6
  • Day 2 – EUR – EU Economic Summit
  • 09.30am – GBP – BBA Mortgage Approvals: expected to slightly increase to 32.2k

 

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