EUR review

Western Union:

The deadlock in Eurozone on Greek's negotiations continued with no expectations on an immediate resolution. German Finance Minister Wolfgang Schaeuble dismissed the idea that Germany's tough stance in the Euro crisis was to blame for Greece's woes. 

Since mid of last week, there have been sound bites from the Greek Government that they may not be in a position to repay the IMF loan of Euro 305 million due next week on June 5. In June Greece has about Euro 1.6 million of repayments due to the IMF and we could finally see the endgame emerge on the negotiations that have conducted for over 100 days since the Syriza Party assumed office. There are fears that Greek could resort to capital controls if they are not able to reach a deal on unlocking the bailout package. 

The key stumbling block here "economic reforms" demanded by the TROIKA is at the opposite end of the platform which got the Syriza party elected earlier this year. In German Gfk Consumer Sentiment for May improved further to 10.2 from 10.0 in April. In France, Consumer Confidence slipped slightly lower to 93 from 94 in April.