Daily Market Report – 03/06/2015 EUR The Euro significantly strengthened during yesterday’s session after Greek Prime Minister Alexis Tsipras said he had issued “a realistic proposal” to the country’s international creditors in an attempt to secure a deal over its debts. Tsipras said the plan included “concessions that will be difficult” ahead of today’s meeting with European Commission President Jean-Claude Juncker in Brussels. EUR The Euro significantly strengthened during yesterday’s session after Greek Prime Minister Alexis Tsipras said he had issued “a realistic proposal” to the country’s international creditors in an attempt to secure a deal over its debts. Tsipras said the plan included “concessions that will be difficult” ahead of today’s meeting with European Commission President Jean-Claude Juncker in Brussels. Mr Tsipras’ statement follows talks in Berlin late on Monday attended by the heads of both the International Monetary Fund and the European Central Bank, International Monetary Fund chief Christine Lagarde and ECB president Mario Draghi, underlining the seriousness of the talks. Reports suggest the meeting was aimed at coming up with a “final proposal” to issue to Athens over the release of €7.2bn in remaining bailout funds. Friday’s payment is the first of four totalling €1.5bn that Greece is due to pay to the IMF in June, and it is understood that the payments could be all bundled together and repaid in a single transaction at the end of the month. GBP Optimism among British construction firms hit a nine-year high last month after Prime Minister David Cameron scored an unexpectedly decisive election victory and growth in the sector recovered from a slowdown, a survey showed on Tuesday. The Market/CIPS UK Construction Purchasing Managers’ Index (PMI) rebounded in May to 55.9 in May from April’s 22-month low of 54.2, above the 50 mark that denotes growth and beating a Reuters poll forecast of 55.0. Cameron’s Conservative Party won a majority on May 7 and the share prices of Britain’s biggest house builders have gained around 20 percent since then. The PMI also showed construction firms took on staff at the fastest rate in five months during May. While the Market/CIPS survey has pointed to solid growth in the construction industry since mid-2013, it has been at odds with much weaker official data. A comparable survey on Monday showed British manufacturing activity inched higher in May after hitting a seven-month low in April but growth in factory jobs sank to a more than two-year low. USD US factory orders fell for the eighth time in nine months, the Commerce Department said on Tuesday. Economists surveyed by Market Watch had expected orders to dip 0.1% after a slightly revised 2.2% increase in the prior month. Orders for durable goods products meant to last at least three years fell 1% in April. Orders for nondurable goods rose 0.2%. Key Announcements09:30 – GBP – Services PMI12:45 – EUR – Minimum bid rate13:15 – USD – ADP non farm payroll estimate13:30 – EUR – ECB Press conference13:30 – USD – Trade balance15:00 – USD – ISM non-manufacturing PMI Our dealers are available via e-mail ([email protected]) or by phone (020 7220 8181).
