No Greece Accord
The Eurogroup failed to reach an agreement on Greece during yesterday’s meetings but the Finance Ministers have pledged to meet again next Monday. Given expectations were already managed ahead of time, markets have generally managed to shrug off this event and key indices in Asia remain in positive territory. In Japan, trade numbers came in much weaker than expected, with the 6.5%y/y (cons. -4.9%y/y) of particular concern. Japan’s Opposition LDP’s campaign platform, released overnight, again pointed to a 2% inflation target and revisions to BoJ law to allow closer ‘cooperation’ with the government. USDJPY traded within a whisker of 82.00, but a new leg higher would require strict policy implementation, which is not on the short-term agenda. EURUSD traded 1.2737-1.2821 and USDJPY 81.66-81.97.
Click here to read the full report: UBS Morning Adviser Europe
UBS Investment Bank