Asian session: the euro fell
Euro bears driving the region’s shared currency to its first two-month loss in a year are facing rising interest rates, bullish bets in futures markets and Angela Merkel’s determination to keep the 17-nation bloc intact.
The euro slid 4.2 percent since April as mounting concern that Greece would default drove Prime Minister George Papandreou to change finance ministers amid a push for 78 billion euros ($111 billion) in austerity measures to tap more financial aid.
The slowing U.S. recovery has also provided support for the euro. The Fed lowered its full-year growth forecast last week, saying the economy will expand 2.7 percent to 2.9 percent versus a range of 3.1 percent to 3.3 percent estimated in April. The Bundesbank said on June 10 that German gross domestic product will rise 3.1 percent in 2011, up from a 2.5 percent increase predicted in February.
The first session of a three-day debate in Greece on new budget cuts is scheduled to begin today. A vote is expected on June 29. An implementation law, which provides the technical details of how the five-year plan will be applied, is also due to be discussed and approved by the deadline of June 30.
EUR/USD: the pair shown low in $1,4100 area then become stronger.
GBP/USD: the pair shown low in $1,5910 area then become stronger.
USD/JPY: the pair become stronger in Y80,80 area.
US data starts at 1230GMT with Personal Income/Expenditures and the PCE Price Index. Personal income is expected to rise 0.4% in May, as payrolls rose 54,000, the average workweek held steady at 34.4, and hourly earnings rose 0.3%. PCE is forecast to hold steady x.x% on the 0.2% decline in retail sales. Non-auto sales rose 0.3%. The core PCE price index is forecast to rise 0.2% following the 0.2% April gain.