New highs were reached against sterling on Wednesday as Greece’s current €240 billion bailout is due to expire at the end of the month and the new Greek government does not want it extended. Athens have initially rejected a proposed six-month extension of the bailout as unacceptable. They have until Friday to request an extension otherwise the bailout will expire on February 28 and the country could well run out of money, which could trigger the country’s exit from the euro zone. Expectations are that the Greeks will request an extension before this deadline but who knows in this high risk low reward game.
Today we also have Eurozone consumer sentiment data out at 3pm which is forecast to improve to -7.55, up from the previous figure of -8.5, and some inflation data for France. So the main story will continue to be Greek debt.