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Euro gains on Greek woes

  • UK Net Lending to Individuals m/m: 3.1B
  • UK Mortgage Approvals: 64k
  • US Pending Home Sales m/m: 0.9%
  • ANZ Business Confidence: -2.3

The newswire surrounding the Greek debt crisis was put to bed early as the EU Commission spokeswoman stated that there would be no new proposal offered to Greece. The Euro price action was interesting as it clawed backed Sunday night’s loss despite the lack of news. There are two main factors which explain Euro gains. Firstly, hope that a deal will be met. Secondly, some sceptics believe that a Euro without Greece will ultimately be a stronger currency. As expected there was fallout from the Greek stance, stock markets across Europe fell while bond yields were on the up.

Looking at the comments from key officials involved, European Commission President Jean-Claude Juncker stated that the “whole planet” would view a Greek “no” vote as a vote to turn Greece’s back on Europe. Meanwhile,  Greek PM Alexis Tsipras told a Greek TV audience that in the event of a “yes” vote, he would pass whatever agreement is required through parliament and would then resign.

Data releases unsurprisingly took a back seat. It is worth noting that US pending home sales rose a further 0.9% in May. The seasonally adjusted index is up more than 10% annually and at its highest level in nine years, another positive sign for the US economy. 

  • UK Current Account
  • UK Final GDP q/q
  • RBA Gov Stevens Speaks
  • Euro CPI Flash Estimate y/y
  • Euro Unemployment Rate 

Newswire will continue to dominate surrounding Greece which will intensify with the Euro group meeting happening today. Greece could be looking at a default today if they miss their payment to the IMF. In addition, there is a raft of data from the Eurozone and UK but this is likely to take a back seat to rhetoric from the Euro group meeting. On the docket today, we have UK current account and the Eurozone unemployment rate. Crossing the pond, the key figure markets will focus on US consumer confidence.