FX Daily

Focus is likely to remain on Greece at today’s Eurogroup meeting. The Greek finance minister Yanis Varoufakis has said he will present six specific reform proposals at the meeting. The proposals relate to the deadline of end-April, when the intended reforms will be specified further. In order for the disbursement of the outstanding tranche to happen, the reforms will have to be found sufficient by the relevant institutions.

We look for an increase in the euro-area Sentix Investor Confidence Index for March reflecting the general pickup in economic activity.

We expect Chinese CPI inflation released early tomorrow to increase to 1.4% y/y in February from 0.8% y/y in January due largely to distortions as a result of the timing of the Chinese New Year public holiday. Inflation will probably ease a bit again in March and remain substantially below the 3% inflation target the Chinese government has just announced for 2015.

In the US, both the hawkish (Mester and Fisher) and dovish (Kocherlakota) wing of the US FOMC are represented in today’s Fed speeches but none of the speakers are voting members of the FOMC this year.

Read the full report: FX Daily