Money markets becalmed- for a change

The money markets are experiencing a lull across the seas after the whipsaw markets over the past few weeks.Money markets becalmed- for a changeAlthough the situation in Greece is still very worrying, it seems the markets are paying heed to the ‘no news is good news’ saying, with most of the major currency pairs trading in tight ranges.

Lower volatility should persist this week in the absence of any major developments on the macro front (Euro-zone!) with little of the big ticket data due over the coming days.

We had the UK Cost of Purchasing Inflation data this morning; the figure was marginally lower than the consensus estimates at 3%, still at an uncomfortable level for the Bank of England.

The Bank of England minutes are also due tomorrow morning. Completing UK data releases this week is the preliminary GDP number on Thursday.

It is worth noting that the arch dove on the MPC, Adam Posen, has confirmed he will not be serving another term.

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