EUR
The major talking point yesterday was again Greece, where major differences
with their international creditors raised the pressure on the Athens
government, as IMF negotiators walked out of debt talks in Brussels and flew
home.
 
The surprise IMF announcement came as the European Union told leftist Greek
Prime Minister Alexis Tsipras bluntly to stop gambling with his cash-strapped
country’s future and take crucial decisions needed to avert a devastating
default.

EUR
The major talking point yesterday was again Greece, where major differences
with their international creditors raised the pressure on the Athens
government, as IMF negotiators walked out of debt talks in Brussels and flew
home.
 
The surprise IMF announcement came as the European Union told leftist Greek
Prime Minister Alexis Tsipras bluntly to stop gambling with his cash-strapped
country’s future and take crucial decisions needed to avert a devastating
default.
 
“There are major differences between us in most key areas,” IMF
spokesman Gerry Rice told reporters in Washington. “There has been no
progress in narrowing these differences recently and thus we are well away from
an agreement.”
 
Asked about concerns for the process raised by the departure of IMF and Greek
negotiators, an EU diplomat said: “If the process was working properly the
president would not have had to have a meeting with Tsipras today.”
 
Tsipras told reporters he had worked on bridging the remaining differences on
fiscal and financing issues. Tsipras has received the message from Greek
voters, most of whom say they want to remain in the euro zone and want him to
make concessions for a deal.

USD
The Dollar temporarily strengthened after retail sales increased 1.2 percent
last month, matching forecast of a 0.2 percent advance in April. The gain was
broad-based with 11 of 13 major categories gaining.
 
The data show American consumers are ready to spend on more than just cars,
unlocking months of savings from cheap gasoline and higher incomes as the US
jobs market improves. A pickup in purchases accompanied by faster wage gains
improves the outlook for growth this year.
 
The figures used to calculate gross domestic product, which exclude categories
such as food services, auto dealers, home-improvement stores and service
stations, increased 0.7 percent in May after rising 0.1 percent the month
before.
 
Applications for U.S. unemployment benefits remained below 300,000 for a 14th
straight week, a sign of labour market strength that will help fuel U.S.
growth. The data indicates employers are retaining workers in anticipation
of a pickup in demand this quarter after a slow start to the year. Combined
with a spring spurt in payrolls, the employment picture bodes well for
household spending, the biggest part of the economy.
 
Federal Reserve policy makers are watching the labour market as they consider
the timing of the first interest rate increase since 2006. The Federal Open
Market Committee is scheduled to gather on June 16-17.

Key Announcements

13:30 – USD – PPI
15:00 – USD – Prelim UoM consumer sentiment

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