WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: USD was modestly firmer against its major currency peers in European trade on Tuesday ahead of Fed Chair Janet Yellen’s testimony before Congress later in the day. Elsewhere, EUR/GBP was trading close to year-to-date highs with investors awaiting BoE Deputy Governor Ben Broadbent’s speech today especially following mixed signals from a number of BoE officials lately which have increased the odds for an August rate hike. Turning to government bond markets, US Treasury and Bund yields were slightly higher on the day with long-dated paper underperforming.
GREECE: The ESM Managing Director Klaus Regling suggested that Greece develop a strategy for returning to the financial markets before the expiration of the current programme in August 2018 adding that the required borrowing from the markets will not be too high as it would be used to replace maturing debt, given Greece’s projected primary surpluses. According to the Hellenic Statistical Authority (ELSTAT), CPI inflation in June 2017 came in at 1.0% compared to -0.7% a year earlier while the overall Industrial Production Index (IPI) in May 2017 increased by 5.4%YoY while in May 2016 it had increased 3.5%YoY.
Viewers can log herebelow and read the full report: Daily Overview July 11 2017