Despite hopes for a looming deal and an end to agonizing uncertainty the Greek debt drama has inflicted on global markets, there is still no deal, which kept the market on edge. But it is still unclear whether Greek politicians, facing public outrage, will accept the tough austerity policies pushed by European authorities and the IMF as to the conditions to secure a deal.

Despite hopes for a looming deal and an end to agonizing uncertainty the Greek debt drama has inflicted on global markets, there is still no deal, which kept the market on edge. But it is still unclear whether Greek politicians, facing public outrage, will accept the tough austerity policies pushed by European authorities and the IMF as to the conditions to secure a deal.

The ECB has agreed to exchange the government bonds it purchased in the secondary market last year at a price below face value, provided the debt-restructuring talks have a successful outcome.  The 15th February is the latest a deal can be finalised in order to allow enough time for the Greek debt exchange.

Elsewhere in the Euro German industrial figures came in weaker than expected – this fell Output fell 2.9 per cent.  In the whole quarter German industrial output fell 1.9 per cent, which Capital Economics believes will take 0.6 per cent off GDP. That represents the first decline in GDP in 10 quarters.

Other data showed both the Czech Republic and Hungary are experiencing strong industrial growth, while French trade figures hit a record deficit as import growth exceeded increases in exports.

The French trade deficit hit a record high of £57.8bn in 2011, up 35 per cent on the year.

In the US, the greenback rebounded against most of the world’s major currencies as Greece has come close to agreements, in the past only to experience similar delays – with investors rallying to restock up on the Dollar prompting further potential strengthening over the next 48 hours.

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