05/11/2015
Economic Reports & Headlines
The Bank of England made their monetary policy announcement today. The bank’s rate remained unchanged at 50bps and their quantitative easing program was at 375 billion pounds.
According to the chairman of the Eurogroup, Dijsselbloem, Greece negotiations have advanced and a comprehensive list needs to be submitted before any deal could be reached.
According to Jim Reid, the head of global fundamental credit strategy at Deutsche Bank, German Chancellor Merkel is facing growing pressure from members within her political party to discontinue Germany’s support to Greece.
Trades
Tomorrow I will be paying attention to Greece IMF payment of 744 million euros. It is a possibility that they will delay the payment or simply default. If Greece decides to miss the payment, then risk assets will likely decline and I will be there to short them. I’m currently long the British Pound and it has been rallying for the last two sessions. Cable (British Pound) could trade with risk assets in the event of a Greek default. Another event I will be looking forward to will be the ECB weekly meeting on Wednesday where they will discuss their Emergency Liquidity Assistance program. Additional funding to Greece from the ECB through the ELA program could be in jeopardy if the governing council decides to raise the haircut on collateral posted by Greek banks to access those funds.
Trades
Tomorrow I will be paying attention to Greece IMF payment of 744 million euros. It is a possibility that they will delay the payment or simply default. If Greece decides to miss the payment, then risk assets will likely decline and I will be there to short them. I’m currently long the British Pound and it has been rallying for the last two sessions. Cable (British Pound) could trade with risk assets in the event of a Greek default. Another event I will be looking forward to will be the ECB weekly meeting on Wednesday where they will discuss their Emergency Liquidity Assistance program. Additional funding to Greece from the ECB through the ELA program could be in jeopardy if the governing council decides to raise the haircut on collateral posted by Greek banks to access those funds.
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