The emergency summit began in Brussels yesterday as European leaders continue to fight for a Greek deal. Greek PM Tsipras was expected to present a fresh proposal to his 18 Eurozone counterparts in order to keep his country in the Eurozone. After much talk of this new plan to be presented at the Euro summit yesterday, it never came, instead Greece were given an official ultimatum from Germany’s Angela Merkel. Now it seems the EU have a plan for this Grexit in place according to comments after the meeting yesterday from European Commission President Jean-Claude Juncker. Pressure remains firmly on Tsipras as leaders gave Athens five days to agree terms or face ejection from the single currency zone, if no deal is reached by Sunday Greece will face the reality of going alone.
The economic docket was relatively busy with the release of two pieces of high tier secondary data from the UK. Manufacturing production from the UK disappointed, missing expectations and posting its worst figure this year of -0.6%. Industrial production was released simultaneously and unexpectedly rose due to strong oil and gas production. Industrial production registered a better than expected 0.4%. The mixed data saw GBPUSD spike higher, before shortly declining after a strong Dollar trend continued to push the Pound lower throughout the day.
The busiest day of the week sees UK politics dominate the day session whilst focus switches to the US central bank in the evening. Wednesday’s budget has been claimed by Chancellor George Osborne to have “laser like focus” in regards to productivity and living standards. In the evening, the FOMC release their latest meeting minutes where markets will be fixated on any signaling device or commentary from the Fed. After the mixed jobs data last Thursday, a September rate rise stills the market favourite, however all could change after this release.