The economic calendar of last week was characterized by high impact market movers mainly for the United States. The rest of the news that have enlivened the markets were those concerning the speech of the Fed governor, Janet Yellen, the end of the G7 and the restructuring of the Greek debt.
First things first. Earlier this week, European creditors and Greece have agreed to release more funds thanks to a significant reverse of the International Monetary Fund on its request for a reduction of the Greek debt that is leading the country into a deep recession.
The ministers of the euro area have decided to grant Greece a further € 10.3 billion in bailout funds, divided into two installments: € 7.5 billion in June and € 2.8 billion in September.
The release of macroeconomic data from the United States started with the trade balance, which calculated on a monthly basis and for the month of April, recorded a total of $ -57.53 billion, thus resulting an increase on the previous year saw a $ -56.9 billion.
The consumer confidence index of Michigan, for the month of May, reported a value of 94.7 points, thus disappointing the expectations placed at 95.4 points and a previous one of 95.8 points.
It was then the turn of the second preliminary estimate of US GDP for the 1st quarter of 2016 that was higher than the first revision of + 0.5%. The figure is in fact increased to + 0.8%.
To rise, however, were the US orders of durable goods in April; the harmonized index beat the expectations according to official data released on Thursday. The total orders of durable goods, which include those in the transport sector, increased by 3.4% last month, as reported by the Commerce Department.
Also this week the initial requests for unemployment benefits were recorded. They have marked a total of 268.000 units, thus beating expectations placed at 275.000 units and the previous figure seen at 278.000 units.
As for the G7, their protagonists have highlighted the strengthening of the risks against the world economy but no agreement has been taken to kick off a spending plan coordinated to fight the economic slowdown. As expected the G7 did not yield the desired results.
The week ended with the speech of the President of the Federal Reserve, Janet Yellen. Fed Chairman during his speech at Harvard University deftly avoided to confirm the near raising interest rates in June but she insisted the intentions of the US central bank: in the coming months will be appropriate an increase in interest rates.
Janet Yellen offered a unique and complete picture about the US economy and the commitment of the US central bank to avoid at all costs a new financial crisis.
Her words have offered support to EUR / USD exchange rate, prolonging the downward until the end of the week, which took place in 1,111.
The appreciation of the US currency continued, with the dollar spot index that has exceeded the 95. This happened in the light of the renewed optimism among members of the FOMC on the rise in US interest rates.