httpvh://www.youtube.com/watch?v=Nl2ENI_Auro

In the UK the positive economic outlook over recent days is tempered by more parliamentary fears. A survey by Deloitte shows that some of the UK’s largest companies fear that a hung parliament would damage the economy and their own businesses. In the polls it appears that David Cameron is leading but this survey makes it apparent that the economy still lives in fear of a hung parliament. Even after the good news on industrial production and house prices last week, sterling has lost ground against the euro.

This is down to European governments offering Greece a rescue package worth as much as 45 billion euros at below market interest rates, while a further 15 billion would come from the IMF. Pressured into taking this action after Greek borrowing costs reached an 11 year high, the news seems to have helped a stricken euro and encouraged risk appetite across the board, indeed the reaction to this package will determine future developments. The Greek government still say that they aren’t requesting a bailout, and even the EU are doubtful over whether this 3 year loan package at about 5% will be enough to see Greece through the next few years.

Dollar has weakened on the back of this news from Greece, with oil rising at above $85 a barrel encouraged by the weak dollar.

It is a quiet day for data today, Canada are releasing housing starts at 1:15 and later tonight the US have their monthly budget statement, if positive then this would help dollar. At midnight tonight in the UK the RICS House Price balance will show the strength of the housing market, which in turn can indicate the strength of the UK economy as a whole.