EUR
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

EUR
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.

GBP
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.

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