EUR
Hopes of a breakthrough between Greece and its creditors were dashed last night
after a meeting between Eurozone finance ministers broke down after less than
an hour. The stumbling block over reforms to pension cuts and tax hikes
cropped up again when reforms submitted by Greece were sent back with a raft of
suggested adjustments. Tsipras criticised Greece’s creditors of foul play,
stating that the repeated rejection of equivalent measures never happened

EUR
Hopes of a breakthrough between Greece and its creditors were dashed last night
after a meeting between Eurozone finance ministers broke down after less than
an hour. The stumbling block over reforms to pension cuts and tax hikes
cropped up again when reforms submitted by Greece were sent back with a raft of
suggested adjustments. Tsipras criticised Greece’s creditors of foul play,
stating that the repeated rejection of equivalent measures never happened
before with Portugal and Ireland.

Without a deal, Greece’s current bailout expires on Tuesday, meaning they may
miss making a payment of 1.6B EUR’s to the IMF.

German business morale weakened for a second straight month in June, suggesting
concerns about the Greek debt crisis are hitting the mood amongst companies
across Europe’s largest economy. IFO’s business climate index dropped to 107.4
in June from 108.5 in May. That was its weakest reading since February and was
below the Reuters consensus forecast for a reading of 108.1

Although confidence is slowing many economists do expect Germany  to grow
faster in the April-June period quarter given that the latest data has shown
orders, output, exports and retail sales are all rising.

USD
The world’s largest economy shrank less in the first quarter than previously
estimated, aided by a bigger gain in consumer spending. GDP in the U.S. only
fell at a 0.2 percent annualized rate, revised from a previously reported 0.7
percent drop. The harsh winter weather and port delays that damped growth
at the start of the year have given way to increases in consumer spending and
housing, boosting Federal Reserve projections that the setback was
temporary. 

However, still hindering growth is lower oil prices which is hitting
investment in the energy industry. Also a strong dollar continues to hurt
exporters.

 

Key
Announcements

13:30 – USD – Intial jobless claims expected to rise from 267k to
272k 
14:45 – USD – Markit Services PMI (Jun) expected to rise from
56.2 to 56.7