Yesterday Bloomberg News reported that the Greek government’s predominant focus at the moment is not on deciding how to fill financing gaps over the next few years, but rather the creation of a primary budget surplus for 2013. Returning to growth in 2014 is also a major concern for the nation.
The Bloomberg report was based on comments issued by Greek Finance Minister Yannis Stournaras.
During an interview Stournaras stated: ‘There is no plan B, everything has been agreed with the Euro group. What we’re trying to do now is produce a primary surplus this year, complete these structural reforms and come back to positive growth rates. If we achieve these, then the rest of our problems will be solved.’
But those are no small mountains to climb.
Stournaras also commented: ‘Up to August 2014 Greece is fully covered. For the remaining period the understanding is that if Greece satisfies all the preconditions then our partners will agree to cover the financing gap, so this is not a great concern to us. Further austerity is not a solution to the problem. Now our concern is how to combine further fiscal adjustment with a return to growth.’
Today sees the release of Greek inflation rate data, at 10:00 GMT. Economists have forecast that it will slip from -0.4 per cent to -0.5 per cent.
The Euro/Pound pairing is currently trading in the region of 0.8643
During the European session on Monday the Euro declined against a broadly stronger Pound as Sterling was supported by surprisingly strong services PMI for the UK.
Although the common currency briefly hit 1.33 against the US Dollar following the publication of some positive news for the Eurozone the ‘Greenback’ began to recoup losses sustained following last week’s US employment data and the Euro declined.
However, the EUR/USD pairing went on to approach a 7 week high.
The main causes of Euro movement in the hours ahead are likely to be Italian GDP data and German factory orders figures.
The UK’s NIESR GDP report could also be responsible for EUR/GBP volatility, while US trade balance figures will be of interest to the EUR/USD pairing.
Euro (EUR) Exchange Rates
As of 08:30
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3253 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8643 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4756 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6871 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3730 <