Wise money markets wobbly on eurozone concerns

In Europe the wise money markets took another hit on concerns over debt ridden Greece and the bailout providers to come to a conclusion over their bailout package.Wise money markets wobbly on eurozone concernsThe fact that Greece has been granted an additional 2 years until 2022, to trim its budget lower to 120 percent of GDP growth, was the only news that provided some relief, albeit temporarily.

The decision to dispense the € 31.3 billion tranche will be made at a meeting on November 20, when the EU leaders reconvene.

The euro initially weakened against the Greenback to lows of 1.2660 but has managed to claw its way back up to 1.2730 levels.

A steep rise looks unlikely for the euro as there was further news that investor confidence in Germany and broader Europe fell further by 4.2 points into negative territory in October.

The only silver lining at the moment for the region is that hopes are rising that Spain might finally request for their share of a sovereign bailout.

This led bond yields in the region to ease slightly.

However, there is a general strike in Spain today to protest against the austerity plans that they are faced with.

UK Inflation figures out yesterday morning unexpectedly rose by 2.7 percent from a year earlier in the month.

This was much higher than the forecast for CPI growth which may move away from the BOE’s target which currently sits at 2%.

Most of this inflation hike, as per analysts, is owing to the rise in University tuition fees.

Today, we expect unemployment figures for the UK which is expected to come in at 7.9%.

As we move into the evening, Mervyn King will present the BOE inflation report, so any clear direction is expected following the speech.

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