EUR/USD
Euro rose modestly on Thursday extending as currency traders closely observed high-level discussions in Brussels regarding the Greek debt crisis. In its latest financial stability review published on Thursday, the ECB warned that default risk expectations have “increased sharply in Greece” amid heightened political uncertainty. Greece's government said it aims to reach an agreement with lenders by Sunday. A euro zone official said Greece will not be able to get the money still available under its current bailout plan if it does not agree to the outline of a such a deal by the end of the week.
GBP/USD
The pound edged lower against the dollar on Thursday after data showed that the rate of economic growth in the U.K. in the first three months of the year was unchanged from initial estimates. The Office for National Statistics second estimate of gross domestic product confirmed growth of 0.3% % in the first quarter, unchanged from the initial estimate and below expectations for a reading of 0.4%. The data also showed Britain’s current account deficit was a drag on the economy, shaving 0.9% of GDP growth in the last quarter due to surging imports.
USD/JPY
The dollar fell to U.S. session lows versus the yen on Thursday after Japanese Finance Minister Taro Aso said the yen's recent drop had been "rough," exploding expectations the Bank of Japan may interfere to stem further decline in the currency. Meanwhile, Japan's retail sales rebounded modestly in the year to April after three straight months of falls, bolstering the central bank's case that consumer spending is reviving to underpin a steady economic recovery. Retail sales in April rose 5.0 percent from a year earlier, trade ministry data showed on Thursday, slightly below a median market forecast for a 5.4 percent increase. It followed a 9.7 percent drop in March.
