Greece met its latest IMF repayment deadline as the country continues to stand firm against the Eurogroup. The euro has also held its ground against the dollar with EURUSD ticking higher this morning trading at 1.1200 at the time of writing. This latest sum of around €770m is the biggest single payment to the IMF in a gruelling up and coming schedule of repayments throughout the summer with the real test coming not just in June, where another €1.5b is due back to the IMF, out of a total of €3.5b, but July is the greatest challenge where €3.5b is due back to the ECB out of a total of around €6b due to creditors throughout the month. As if that wasn’t enough then another €3b is due to the ECB in August. So if anyone thought the Greece saga was over they have to think again as this is going to be a long drawn out summer which Greece is only going to be able to survive if it gets the extension bailout funds agreed earlier in the year.
Today is quite quiet on the economic data front with industrial and manufacturing data from the UK which could give sterling another boost after it marked its highest level of 2015 against the dollar yesterday. Overnight and earlier tomorrow morning a number of things should be watched from the RBNZ’s stability report to Chinese money supply and retail sales data.
Further reading:
EUR/USD: Sell In May; Close To A Turning Point – Credit Agricole
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