German exports cushion Euro amid Greece deadline to fulfill obligation

German trade data were expected to show a fall in exports of around 0.8%MoM but upbeat data printed to surprise at 22.8 billion which is beyond both forecasts and previous flashes at 20.6 billion and 21.5 billion respectively.

While it was tempting to assign this to the impact of the Greek crisis, the fact is that exports surged by 2.0% MoM in April and look set to rebound strongly in Q2 overall, following a weak Q1.

This is backed up by German factory orders data, released earlier this week, which point to a recovery in overseas demand. This should be supportive of GDP growth in Q2. Apart from this there is no significant data release that may have impact on Euro.

Following last night's FOMC minutes, Greece remains very much on the radar for financial markets. The country has been given a 'final' deadline to reach a deal with its creditors by Sunday when a summit of all EU-28 leaders will take place in Brussels.

Greece formally applied for ESM funding yesterday and is expected to provide details of a credible reform plan which will be assessed by the European Commission, the ECB and the IMF.