Posted on February 20, 2015 by the XM Investment Research Desk at 8:21 am GMT
The latest developments in the Greek debt crisis was that Athens submitted an application for a 6-month loan extension the previous day, but Germany had rejected the proposal as it did not constitute a “substantial solution”. Germany insists that more of the terms of the existing bailout agreement are incorporated into any loan extension towards Greece. According to other reports however, Greece made some significant concessions in its proposal. A Eurogroup meeting of Eurozone finance ministers is expected to discuss the issue later in the day and most investors expect some kind of deal to take place. The euro remained below the 1.14 level at around 1.1350, as it awaits further developments.
The market was relatively quiet in Asia as countries like China, Singapore, Malaysia and Hong-Kong were closed because of the Lunar New Year Holidays.
Looking ahead, flash PMI numbers from the Eurozone will be key to watch. UK retail sales and Markit manufacturing PMI from the US will also be looked at. The euro is also expected to move around as Eurozone Finance Ministers make statements on arrival to the Eurogroup meeting and as news starts to trickle out with respect to the meeting’s outcome.