Talks between Greece and the Eurogroup continued yesterday, however little progress has so far been made. Eurogroup head Dijsselbloem said there was a possibility a deal between Greece and their Eurozone counterparts can be reached. However this was conflicting with a comment made by German Finance minister Schaeuble who was less optimistic saying he doubts an agreement will be reached at the Eurogroup meeting on April 24th. Elsewhere, Greek Deputy PM Ioannis Dragasakis said that should negotiations fail then the government may have to consider snap elections.
ECB president Draghi reitereated yesterday that the ECB are to maintain their quantitative easing program until the central bank hits its inflation target of 2%, which suggests that this will continue for quite some time. There was not much released in terms of data yesterday, the only piece of note being German producer price index figures, coming out slightly worse than expected at -1.7% against a -1.6% consensus however this was to be expected with the recent dip in energy markets.
The US Dollar managed to make gains against most of its counterparts yesterday, however this seemed to be more sentiment based as there was a lack of data released from the US yesterday. The US sold $48bn worth of 3 and 6 month bonds, pushing the yield down to 0.025% and 0.090% respectively.
With the ongoing situation in Europe and the lack of growth from China, the USD has maintained its safe-haven status however this has the ability to damage US exports with the USD being so low. Fed member Dudley stated that a strong dollar makes the US outlook more of an unknown, also IBM stated that whilst revenues have been down 12% this year, 8% of this accounts for the strength of the USD damaging their exports. The Chicaco Fed National Activity Index (an index designed to gauge overall economic activity) came out at -0.42 yesterday, in comparison with the revised -0.18 last month.
No major news out today.
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