Greek debt talks break down

•      Greek debt talks break down

•      Talks between Greece and its lenders collapsed on Sunday as there was not enough common ground for the negotiations to proceed.

•      With no deal on a technical level, it is up to politicians to take difficult decisions. 

•      The focus now turns to a June 18 Eurogroup meeting and Eurozone leaders’ summit on June 25.

•      EUR could remain under selling pressure; DAX and Eurostoxx 50 may decline further on the risk of a Grexit.

•      Highlight of the week: FOMC meeting on Wednesday

•      Last three statements were all unanimous, this time we could have few dissenters voting for a rate hike. In such case, USD is likely to strengthen.

•      Focus will also be on the updated economic projections and Fed Chair Yellen press conference following the decision.

•      Today:

•      Eurozone: Trade balance for April (not a big market-mover).

•      Sweden: Official and PES unemployment rate for May-A decline in rate=SEK-positive.

•      US: Industrial production for May, forecast of a rebound could be USD-positive.

•      Speakers: ECB President Draghi, ECB Governing Council members: Jens Weidmann, Ewald Nowotny and Peter Praet.

•      As for the rest of the week:

•      Tuesday: RBA releases the minutes of June meeting; UK CPI for May; German ZEW for Jun.

•      Wednesday:  BoE releases the minutes of its June meeting; UK unemployment rate for April.

•      Thursday: US CPI for May, New Zealand’s GDP for Q1.

•      Friday:  BoJ meeting; Canada’s CPI for May.