The Euro had another strong session after Italian Economy Minister Pier Carlo Padoan said he was confident a deal would soon be found to keep Greece in the euro zone and even if it did exit, the currency bloc was now much better placed to withstand the shock.
"I am confident we will get a deal soon," Padoan told CNBC in a television interview. "If there is an accident there might be some shockwaves in the system but the system is very strong, it is much stronger than it was when it all started in 2010 and 2012."
The European Central Bank and the International Monetary Fund want further economic reforms before they release the €7.2bn (£5.3bn) of bailout funds. It’s believed Greece is willing to increase VAT, but reduce rates for food and medicine and a further reduced rate for books and hotel accommodation.
Padoan dismissed suggestions Italy would be next in line if Greece exited the euro zone and said signs of an increase in interest rates were not a threat for Italy's public debt.
The Pound strengthened after data yesterday showed Britain's trade deficit with the rest of the world narrowed more than expected in April, suggesting that it might act as less of a brake on growth during the current quarter. The Office for National Statistics said Britain's total trade deficit narrowed to 1.202 billion pounds in April from an upwardly revised 3.093 billion pounds in March, it’s lowest since March 2014.
British consumers finally look ready to spend like they used to, as lower prices for basics give them more money to eat out and travel, bolstering the economy against weak demand from abroad. Last month the Bank of England forecast that spending would rise by 2.75 percent in real terms this year, the fastest rate in a decade. Consumers account for almost two thirds of British spending, more than in any other big advanced economy apart from the United States.
09:30 – GBP – Manufacturing production
21:00 – GBP – BOE Gov Carney Speaks
Our dealers are available via e-mail (email@example.com) or by phone (020 7220 8181).