Investors are focusing on the Greece situation that has been pushing overall markets down. Nothing new and agreeable was proposed from the Greek party in Monday’s meeting with the EU Economics Commissioner. On the other hand, ECB council member Noyer stated that Greece, due to its small size and along with the euro reforms, will end up having a minimal effect on the euro. The euro has been trading above $1.13 early on Tuesday and also reached a high of 0.73757 against the British pound.
The Chinese Consumer Price Index dropped by 1.2% in May, a reading that was weaker than April’s 1.5% and was also below expectations. The drop was mainly because of a diminishing growth in the price of pork, and it is indicating the increasing economic pressure as the country awaits for more stimulus from the government. The National Australia Bank’s survey showed that the Business Confidence Index rose by 4 points, to 7 last month, its top reading since August of 2014.
The US dollar managed to steady in Tuesday’s Asian session following Monday’s afternoon decline; the greenback took a hit after a Bloomberg wire service cited President Obama stating that a strong dollar was ‘a problem’ during the G7 summit. Obama denied this report, but investors were already worried about the greenback’s strength impact on exports and growth. Both gold and crude oil took advantage of the weaker dollar and posted some moderate overnight gains. However, they remain ‘shy’ due to the timing of the upcoming US rate increase.