Greece defers today’s payment as it rejects creditors’ proposal

•      Greece defers today’s payment as it rejects creditors’ proposal

–     Will repay all IMF debts at end-June as it rejects creditors’ proposal as “unacceptable”

–     Means negotiations will drag out another three weeks; watch next week’s ELA decision for the official view

–     In any event, Greece’s financing runs out at the end of June so they need to reach a conclusion by then. So the conclusion is approaching one way or the other.

•      Bund yields volatile; EUR/USD follows yields

–     Yields rise then fall sharply for no perceptible reason; EUR/USD follows along

•      USD higher all around on good US data

–     Job losses fall sharply, jobless claims fall, labor costs rise = good employment news

•      Today:

–     Eurozone: German factory orders. Greek PM Tsipras addresses Greek Parliament

–     US: nonfarm payrolls expected to be up 220k in May, about the same as in April. Another reading above 200k would indicate continued solid growth in jobs and make a US rate hike more likely. Unemployment rate expected unchanged @ 5.4%

–     OPEC meeting starts today. Likely to keep production target unchanged = negative for oil, oil-related currencies (CAD, NOK) although this may be discounted in the market already.

–     G7 meeting over the weekend to focus on Ukraine

–     Turkish election Sunday