Existing home sales for the US came in 5.1% higher for the month of May, far better than the 4.4% consensus. With sales coming in at 5.35m, better than the consensus of 5.26m and the previous figure of 5.09m. Overall a positive day for the US property market and this did cause the USD to fight back some of the losses incurred earlier in the day, as the existing home sales reading was in fact the highest since November 2009.
Yesterday talks between Greece and the Eurogroup appeared to be progressing. From Monday morning’s open, the EUR made gains of almost 1% against the pound, and 0.7% against the USD before the housing data. Eurozone finance ministers welcomed new Greek proposals for a cash-for-reform deal but said they required detailed study, and it would take several days to determine whether they can lead to an agreement to avert a default.
German Chancellor Angela Merkel also hoped that a deal would be agreed by the end of the week. Merkel did however state that Greek reforms would be required to in order to secure a potential deal with Greece. A Greek government official stated yesterday that ECB President Mario Draghi told Greek PM Tsipras that Greek Banks will remain solvent as long as Greece continues to adhere to the bailout programme agreements. Other piece of note was a rumour that ECB are set to increase their ELA for Greek Banks to EUR 87.8bn from EUR 85.9bn.
10:00 - GBP - Inflation Report hearing
13:30 - GBP - Durable Goods Orders expected to improve from -1.0% to -0.5%