All eyes were on the euro all weekend and yesterday as last-ditch talks between Greece and its international creditors collapsed without an agreement. Sunday’s negotiations ended in disaster as both sides failed to reach an agreement on a new deal – creating fresh fears over a debt default, and therefore Greece’s future in the Eurozone. The major talking point here is the Eurozone’s demand that Greece make spending cuts worth €2 billion in order to secure the additional funds before its bailout expires at the end of June.
The benefits of a weaker euro on exports and of the Eurozone’s quantitative easing programme plus the awesome power of the German economy shone through in Aprils trade balance surplus of €24.3 billion. Perhaps that is why worries over the Greek debt impasse don’t seem to have affected the euro over the last couple of weeks.
This Greek situation is likely to stay at the fore front of the news for today, although German inflation data out at 10am may be a boost for the single currency.