Currency Note Euro

Is Greece any closer to a deal?

By Ricky Bean May 29th, 2015

The euro gave up early gains against the US dollar but gained ground against sterling on Thursday.

The single currency slipped back towards one-month lows against the US dollar as hopes that Greece is closer to a deal with its lenders began to fade for now. The euro had a boost on Wednesday as the Greek government claimed it had started an initial agreement with its international creditors – giving investors confidence that the process to unlock more financial aid had begun. However, the European Central Bank warned yesterday that default risk expectations have ‘increased sharply in Greece’, increasing the tension around the situation.

Today there is retail sales data out in the morning, forecast to increase back up to 0.8%. Last month’s figure was -2.3%, so any deviations from expectations could cause movement in euro markets.