Creditors have agreed further bailout payments for Greece in the region of €7bn. EU unemployment has risen to 9.5% whilst the latest Manufacturing PMI figures showed a small decline.
The Greek government have come to a preliminary deal with creditors which will enable the country to receive further bailout payments. The Greeks will receive a further €7bn in agreement to increase tax rates and the numbers who pay tax, along with cuts to pension pay-outs. Considering the current leader in Greece Alexis Tsipras has a majority of 3 seats in the 300 seat senate and a popularity that is falling, this latest austerity could tip the balance.
There is now thought to be optimism that Greece can progress from this point, however with unemployment nearly at 25% there is a long way to go.
Yesterday morning EU Unemployment data along with the Markit Manufacturing Data both fell below the expected level. The unemployment rate in the EU for March increased from 9.4% to 9.5% whilst the Manufacturing PMI data dropped from 56.8 to 56.7. Whilst the movements were not major, there has been a flurry of positive date for the Eurozone of late and this could be an indication that the top of the curve may have been reached.
Preliminary Gross Domestic Product data will be released for Q1 today with an improvement on the previous quarter of 0.1% taking growth up by 0.5% for Q1.
The Producer Price Index will also be released at the same time and is expected to show a drop from March to February of 0.4% to 4.1%. If there is any deviation from these releases either positively or negatively then there could be a significant effect on the Euro.
Finally the Non-Monetary ECB meeting will be held today, where the Central Bank will discuss the current economic situation however they are bit expected be change any of the current stimulus measures.
Euro rates will continue to be driven by the French elections this Sunday. Clients with a requirement involving the Euro may benefit from a quick discussion with their dedicated broker. If you are yet to trade with us, feel free to call us on 01494 725 353 or email me here and Ill be happy to reply personally.
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