Time For Greece to take decision

Should Sunday's EU Leaders' Summit on Greece in Brussels reject the latest Greek proposals pending a vote in the Greek parliament tomorrow morning then there is the tangible risk of shifting to plan 'B' which is for Greece to exit from the euro.

Alternatively, if the as-yet unknown contents of Greece's latest proposal are the foundation for something constructive then we may start the week very differently in a positive risk-on mood ahead of key testimony by Chair Yellen and Chinese GDP. If so, it could mitigate a significant impediment to Fed rate hikes and thus the ironic effect maynot turn out to be sustainably positive for the risk trade. 

The ECB policy meeting on Thursday will be under similar such influences with President Mario Draghi awaiting direction from political leaders. As yet it is unclear whether his focus will be upon unfreezing aid to Greece's banking system, or shifting gears to contain contagion effects of a Greek exit.

Against this backdrop are far lesser concerns in the relatively minor data flow that markets are likely to largely ignore. CPI revisions in the Eurozone, new CPI data in the UK, and ZEW investor confidence gauges for the Eurozone will be included on the list, says Scotia bank. 

Bank of England Governor Mark Carney will provide a major address on Thursday evening in London and will therefore have the benefit of being able to colour his views with knowledge of the week's key events after they have unfolded and therefore with the potential to influence his thinking on future Bank of England policy moves.