World Economy

Euro Lower on Renewed Greece Concerns

Euro Lower on Renewed Greece ConcernsEuro Lower on Renewed Greece Concerns

Euro is generally lower this week so far on renewed concern over Greece. In particular, there is some pressure after a European commission spokesman said that the summit in Latvia this week is unlikely to yield in breakthrough in the negotiation.

While EU commissioner on economics said that there have been substantial progress in the talks, time in running out for Athens, reported.

Greek Prime Minister Alexis Tsipras also admitted the country is running out of funds but he noted that “the lack of liquidity is neither the choice nor the responsibility of the Greek government... It is a tough negotiating tactic of our partners, and I do not know whether everybody in Europe feels proud of it”.

Eurozone will release German ZEW economic sentiment Tuesday, which is expected to show deterioration in May. Eurozone will also release CPI final. UK CPI and PPI will be watched.

Dollar is mildly firmer against other major currencies and pared back some of this month’s loss. The greenback is supported by surging treasury yields and stocks. 30-year yield is back above 3% handle and closed at 3.019% overnight. 10 year yield also gained and closed at 2.228%.

Meanwhile, US made new record highs even though the momentum of the rally was relatively weak. DJIA closed 26.32 pts, or 0.14% up at 18298.88.S&P 500 closed up 6.47 pts, or 0.3% at 2129.20. Both were record close. US will release housing starts and building permits later Tuesday.