Greek Finance Minister Yanis Varoufakis said on Sunday that Greece intends to meet all obligations to its creditors, ahead of the €450m loan it is due to repay to the International Monetary Fund this week. The managing director of the IMF, Christine Lagarde stated that confirmation of payment would be duly welcomed and that talks over Greece’s bailout would resume promptly this week. This is a sign of light at the end of the tunnel as far as Greek debt is concerned.
The euro zone country is fast running out of cash, but the bailout extended by the IMF, European Commission and European Central Bank has been frozen until the leftist-led government reaches agreement on a package of reforms. Good Friday and Easter Monday was celebrated by the majority of countries within the Eurozone and as a result there was a lack of economic data over the last few days.
The highlight of the Easter weekend for the USD was the release of the non-farm payrolls on Friday, coming in at a disappointing 126k against a consensus of 245k, the lowest we’ve seen since October 2014. The initial reaction caused a vast sell off of the Greenback, however a lot of retracement was seen as we headed closer to the opening of the European sessions.
Bad weather across the East Coast and port strikes in the West has been partly blamed for this. The unemployment rate showed a figure of 5.5%, which was in line with consensus, but is still at the lowest levels since the 2008 recession. The mixed bag of data really has given the Fed food for thought, and whether an interest rate hike in the summer is still on the cards. Monday also saw the release of Services PMI, showing a reading of 59.2 against a previous of 58.6.
EUR - 09:00: Eurozone Markit Services PMI expected to remain at 54.3
USD - 19:00: US Consumer credit change expected to increase from 12.5B to 11.56B
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