EUR
Yesterday Greece’s biggest creditor Germany said that the euro zone would give
Athens no further financial aid until it has a more detailed list of reforms
and some are enacted into law, adding to scepticism over plans presented by
Greece last week. Chancellor Angela Merkel said Athens had some degree of
flexibility on what reforms to implement but that they must
 satisfy their European partners. There was no immediate

EUR
Yesterday Greece’s biggest creditor Germany said that the euro zone would give
Athens no further financial aid until it has a more detailed list of reforms
and some are enacted into law, adding to scepticism over plans presented by
Greece last week. Chancellor Angela Merkel said Athens had some degree of
flexibility on what reforms to implement but that they must
 satisfy their European partners. There was no immediate
reaction from the Greek government on whether the list would be amended further,
with reports suggesting it could take several more days before a proper list
was ready.

Due to the uncertainty over Greece’s financial situation Greek bond yields rose
yesterday. The yield  on 10-year Greek debt inched up to 11.11%, from
11.04%. Also Greece’s two-year bond yields has risen from 20.4% to 20.8%,
implying an even higher risk of default.

Data revealed yesterday showing that  European economic sentiment jumped
in March. A third successive rise in overall Eurozone economic sentiment
to a 44-month high in March indicates that a more favourable growth environment
in the Eurozone is increasingly being fostered by the much more competitive
euro, low oil prices and major ECB stimulus. The Commission’s economic
sentiment index jumped to 103.9 this month, beating expectations. This
continues the upward trend observed since the beginning of 2015.

Inflation rebounded in Germany last month. Annual inflation was up 0.1% in
March, up from minus 0.1% in February and minus 0.5% in January. However, some
economists have warned it could fall back into negative territory with energy
prices expected to stay low throughout this year.

GBP
Consumer confidence has soared to a 13-year high in March
with expectations Britain’s are preparing to spend their cash over
the Easter weekend. Gfk’s consumer confidence index rose 3 points to a score of
plus 4 in March compared to the previous month. The index takes into
consideration five areas to track consumer confidence, with all areas more
upbeat. The major purchase index was the biggest riser, up 5 points, indicating
consumers were more willing to make a major purchase than they were last year.

Key
Announcements
GBP – 09:30: UK GDP (MoM) expected to fall
from 0.7% to 0.5%
EUR – 10:00: European Consumer Price index (YoY) expected to rise from -0.1%
from 0.3% 

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