Monday marks the second day of the G7 meetings; on Sunday the G7 leaders voted to keep the sanctions against Russia until President Putin fulfills the peace terms with Ukraine. Meanwhile, the news for Greece are not very positive as they have yet to find a debt resolution with their creditors. Obama and Merkel agreed that the country needs to reform and begin to achieve some sustainable growth. US officials expressed their fear for the volatility impact in the markets as the deal and a possible “Grexit” are being discussed.
Chinese exports in May dropped by 2.5% since last year. However, they beat the forecasts of $44.9 billion and climbed to $59.5 billion. Further data on Monday showed a surplus for Japan’s current account, its tenth in a row. The surplus of $1.3 trillion beat market expectations of $1.7 trillion. Monday is a half-trading day in Australia due to the Queen’s birthday. Therefore, the Australian index ASX (Sydney200) will only be available for its night session (07:15 GMT onwards).
The US dollar started the week strong after Friday’s jobs report supported a Fed rate increase in September. The nonfarm payrolls increased by 280K last month, which was the biggest jump since December. The dollar continues to trade close to thirteen year highs against the Japanese yen, while the Dollar Index is back above $96. On the other hand, gold was trading near eleven week lows early on Monday but seems to be breaking the three-day losing streak of last week.