With much of Europe closed on Monday for May Day, those pushing for a Greek debt restructuring have taken their feet off the accelerator a bit. Greek credit default swaps have narrowed, now about 1350 bp from well above 1400 bp earlier in the week.
Spanish spreads over bunds are tighter as well, by about 7 bp to 209 bp over. Spain had appalling employment and retail sales data this morning.
Anything that takes pressure off the periphery in Europe is a plus to the euro, as if it needs it…
We consolidate now in the 1.4866 area.
