EUR
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

EUR
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

GBP
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%.

USD
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.

Key
Announcements:
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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