Britain says Eurozone Instability Could Weigh On Its Economic Recovery

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Mark Hoban
Britain's financial services minister, Mark Hoban, speaks during the Reuters Future Face of Finance Summit in London

Treasury Minister Mark Hoban spoke to Parliament today stating that the instability in the Eurozone could still weigh on Britain's economic recovery.

It could have a significant economic impact upon the UK economy and that's why it is important that the Greeks do resolve their problems in conjunction with other member states, Hoban told parliament.

Hoban reiterated that Britain was unwilling to be drawn into a further bailout of Greece, and wanted the tab to be picked up by fellow Eurozone members.

British banks have a relatively small exposure to Greek debt, $4 billion, nevertheless we are taking this seriously and instability in the Eurozone could hold back the UK's economic recovery, Hoban said.

The GBP/USD is trading flat today, 1.6191. However, the following key events this week will surely create volatility for the British Pound:

June 21 MPC Fisher speaks @ 4:10AM EST

June 21 Public Sector Net Borrowing @ 4:30AM EST

June 22 MPC Meeting Minutes @ 4:30AM EST

June 23 Inflation Report Hearings (Tentative)

June 24 BOE Gov. King speaks

Technical Corner:

GBP/USD:

Weekly Support Levels - 1.6032, 1.5874, 1.5669

Weekly Resistance Level - 1.6395, 1.66, 1.6758

All eyes will be on the Greece debt crisis this week as it will continue to weigh on risk appetite.

 

 

 

 

 

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