The dollar pulled back yesterday after the jump on Friday following the impressive headline nonfarm payroll figure and US treasury yields have retraced from their highs. This has allowed the euro to bounce strongly against the dollar with EURUSD pushing back above 1.1300. It would seem that finally the strong words from global leaders at the G7 summit, who have voiced their concerns over the Greece situation and the country’s lack of compromise, have finally had an impact as further talks are scheduled to thrash out a deal by the end of the month. For now the FX markets seem not to be too worried as the euro continues to rally, however unfortunately this all looks too reminiscent of what we’ve seen in the past and the Eurogroup is still yet to have received new proposals for reform from Greece. With German Chancellor Merkel saying that time is running out then it means that the end of June is the real crunch time for Greece and will determine whether they default on their debts or not.
Today economic data releases are thin on the ground although there’s Eurozone GDP this morning which could impact the single currency.