After declining yesterday to a one month low, the euro is rebounding on Wednesday despite some lingering jitters in the market about Greece’s looming June 5th debt deadline with the IMF, combined with Spanish election results over the week-end that has sparked concerns of another anti-austerity movement gaining steam and a Greek style debt drama repeating itself all over again in the Eurozone’s fourth largest economy.
Greek leaders will be meeting with their creditors in Brussels on Wednesday as time is winding down for Athens to secure a new financial deal before their €1.6 billion payment is due to the IMF on June 5th.
Over the week-end, Greece’s Interior Minister Nikos Voutsis said on Mega TV that Greece can’t make the € 1.6 billion payment to the IMF in June unless it first works out a “reasonable agreement” with its international creditors.
Some of the key sticking points in the negotiations between Athens and their international creditors revolve around VAT -sales tax rates, budget targets, and implementing pension and labor reforms.
U.S. equity futures are pointing to a flat opening on Wednesday with little economic data on tap except for the MBA Mortgage Index at 7:00 am EST.
On Tuesday the dollar rallied, U.S. equities saw selling pressure with S&P declining over 1.04 percent which came on the heels of Friday’s inflation pickup numbers with the consumer price index that coincided with bullish comments from Fed Chair Janet Yellen about an interest rate occurring in 2015.
The dollar was also helped on Tuesday by a series of economic reports that showed stronger than expected results with consumer confidence, new home sales for April, and the Case-Schiller 20 city Index.