The Greek Saga Continues!
The euro continues to lose ground today, because the Prime Minister of Greece Alexis Tsipras declared on Saturday that his country would not accept "humiliating bailout terms." The country is short on liquidity and it looks like Greece will not be able to make debt repayments totalling €1.6 billion to the IMF in June. The euro is falling against most major currencies.
The situation in Greece combined with inflation figures and comments from Fed Chair Janet Yellen on Friday are positive for the greenback. Core inflation is at its highest level in two years, and Yellen stated that key rate hikes will be required by the end of the year of the economy continues to expand. Let us note that since January 29, 10-year Canadian and U.S. bond yields have risen by 0.41% and 0.57% respectively.
U.S. stock markets are closed today for the Memorial Day holiday. As such, there is little volatility expected for most major asset classes.
