The EUR/USD recovered 40 points to trade at 1.0912 after German Gfk consumer sentiment reported better than expected. The US dollar eased a bit correcting from its climb on Tuesday. Greece over the weekend indicated that they are unable to make their payments due this month. Greece must repay four loans totaling $1.76 billion to the IMF next month. Athens has the money to make monthly wage and pension payments this week, a government spokesman said on Monday. But he was less direct when asked about the June 5 payment, reiterating the government’s stance that it has the responsibility to pay all its obligations.
The euro broke a key support to hit a new 1-month low against the dollar on Wednesday as Greek default woes increased and as the impact of last week’s hawkish Fed comments stayed. European and Greek bond yields have risen sharply with the Greek 2-year notes seeing a 2 percentage point rise in the yield on Tuesday. German 30-year bonds auction later on Wednesday will therefore be watched keenly.
The euro broke a key support to hit a new 1-month low against the dollar on Wednesday as Greek default woes increased and as the impact of last week’s hawkish Fed comments stayed. European and Greek bond yields have risen sharply with the Greek 2-year notes seeing a 2 percentage point rise in the yield on Tuesday. German 30-year bonds auction later on Wednesday will therefore be watched keenly.