EUR
Greek PM Alexis Tsipras has urged voters to reject creditors’ demands in a snap
referendum on Greece’s debt crisis due on Sunday. Tsipras said a clear vote
against austerity would help Greece negotiate a better settlement to the
crisis.

Greece’s bailout expires on Tuesday, the same day it faces a deadline to repay
a €1.6bn (£1.1bn) loan to the International Monetary Fund (IMF). EU leaders
have warned that a rejection of the creditors’ proposals on Sunday would mean

EUR
Greek PM Alexis Tsipras has urged voters to reject creditors’ demands in a snap
referendum on Greece’s debt crisis due on Sunday. Tsipras said a clear vote
against austerity would help Greece negotiate a better settlement to the
crisis.

Greece’s bailout expires on Tuesday, the same day it faces a deadline to repay
a €1.6bn (£1.1bn) loan to the International Monetary Fund (IMF). EU leaders
have warned that a rejection of the creditors’ proposals on Sunday would mean
Greece leaving the Eurozone – though Tsipras says he does not want this to
happen.

Mr Tsipras also hinted strongly that he would resign if the result of the
referendum was a “yes” vote, saying he would respect the result of
the vote but would not lead a government to administer austerity in perpetuity.

Ratings agency Standard and Poor’s cut Greece’s sovereign debt rating one notch
further into junk levels to CCC- on Monday, saying there was a 50 percent
probability it would leave the euro zone. German CPI figures also released
yesterday, with the YoY coming in at a disappointing 0.3% against a 0.5%
consensus, however this was pretty much a non-event given the focus for the
Euro at the moment is solely on Greece.

GBP
The GFK consumer confidence index published yesterday showed confidence among
UK shoppers climbed to a 16-year high. British household spending, the main
driver of the country’s robust economic recovery, was weak at the start of the
year. A pick-up in wage growth and the lowest inflation in fifty years has
boosted disposable income in recent months.

However Mortgage approvals were a disappointment yesterday. Mortgage approvals
for house purchases numbered 64,434 in May from 67,580 in April. Analysts had
forecast 68,700 mortgage approvals were made in May. Yesterday’s data aside
there have been signs that the housing market is heating up again. Mortgage
approvals rose in four of the last six months, and the pace of price rises has
picked up once again.

USD
US pending home sales for the month of May were a disappointment. Coming in at
0.9% against a 1.2% consensus. This is now the 4th time in 6 months that the
pending home sales has missed consensus, outlining concerns raised by Yellen
that the property market is going through a slow period. The only other piece
of note from the US was the Dallas Fed Manufacturing Business Index, with the
index showing a reading of -7.0 against a -20.8 consensus.  

Key
Announcements

08:55 – EUR – German Unemployment rate – expected to remain unchanged
at 6.4% 
10:00 – EUR –  Consumer Price Index – expected to increase
to 0.3% from 0%
15:00 – USD –  US Consumer confidence (June) expected
to improve to 97.3 from 95.4