This week Eurogroup members approved another bailout deal for Greece, unlocking 10.3 million euros in financial aid. The approval came after last Sunday’s Greek Parliament approved a second round of austerity measures. The country is expected to receive the first part of the bailout in early June. Meanwhile, economic data from the Eurozone showed that the preliminary flash composite PMI fell to a 16-month low suggesting that growth was likely to slow into the second quarter. German GDP revision saw an unchanged print, confirming that economic growth surged in the first quarter of 2016, rising at a pace of 0.70% in the first quarter of the year.
In the UK, revised GDP estimates saw no change, illustrating that the UK's economy grew 0.40% in the first quarter. Business investment was revised lower by -0.50%, notching a second consecutive quarterly decline. The sterling was however unfazed, and in fact strengthened by opinion polls which suggested that the Brexit 'Stay' camp was garnering a stronger than expected lead.
In the US, revised GDP data for the first quarter showed that the economy grew at a pace of 0.80%, up from preliminary estimates of 0.50%. Economic data was broadly positive this week as durable goods orders increased 3.40% on the headline. The housing sector also saw a broad improvement as pending home sales jumped 5.10% monthly, up from a revised 1.60% in March.