– Eurogroup failed to reach an agreement on Greece, yet again
– Japan’s October trade deficit weaker than expected
– US data likely to surprise weak today
What to watch for today
GBP: BOE minutes. We expect the minutes from the latest MPC meeting to mirror the dovish tone of last week’s inflation report. Most interesting will be to get more details on how the repayment of gilt coupons to the Treasury fed into the November policy decision, as mentioned by the inflation report itself. Our economists remain of the view that the minutes are likely to reinforce the notion that QE remains the monetary instrument of choice, rather than FLS. We remain bullish on GBP and are long sterling against SEK in our cash portfolio.
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