Euro dropped after Greece failed to come up to an agreement with its lenders. The Eurogroup refused to extend the country's financial aid program without a clear reform program. This might lead Greece to a default on its €1.6 billion payment to the IMF due June the 30th. This might result in the country's exit from the euro zone. This weekend Greece's government announced a referendum on the agreement with creditors. The referendum will be held on July the 5th. Meanwhile daily withdrawals were limited to 60 euros. It is prohibited to transfer money abroad.
The yen received safe-haven support amid Greece crisis. However the currency was slightly weighed by weak industrial production data. The country's Ministry of Economy, Trade and Industry reported that industrial production fell by -2.2% m/m and -4.0% y/y in May.
Also today Bank of Japan Governor Kuroda said that the central bank remained committed to achieving the 2% inflation target. At the same time he noted that global economic uncertainty creates risks for the timing of this target.
EUR/USD: the pair has fallen to $1.0955 this morning
USD/JPY: the pair fell to Y122.10
GBP/USD: the pair fell to $1.5665
The most important news that are expected (GMT0):
(time / country / index / period / previous value / forecast)
08:30 United Kingdom Consumer credit, bln May 1173 1100
08:30 United Kingdom Net Lending to Individuals, bln May 2.9
08:30 United Kingdom Mortgage Approvals May 68.08 68.7
09:00 Eurozone Economic sentiment index June 103.8 103.8
09:00 Eurozone Consumer Confidence (Finally) June -5.6 -5.6
09:00 Eurozone Business climate indicator June 0.28 0.27
09:00 Eurozone Industrial confidence June -3.0 -3.0
12:00 Germany CPI, m/m (Preliminary) June 0.1% 0.1%
12:00 Germany CPI, y/y (Preliminary) June 0.7% 0.5%
12:30 Canada Industrial Product Price Index, y/y May -2.4%
12:30 Canada Industrial Product Price Index, m/m May -0.9%
12:30 Canada Raw Material Price Index May 3.8%
14:00 U.S. Pending Home Sales (MoM) May 3.4% 1.2%
22:45 New Zealand Building Permits, m/m May -1.7%
23:05 United Kingdom Gfk Consumer Confidence June 1