Forex: Monday's review
The euro weakened versus the yen after Standard & Poor’s said a debt-rollover plan for Greece may prompt a “selective default” rating for the country.
The euro earlier advanced on speculation the European Central Bank will increase interest rates this week. The ECB on July 7 will increase its benchmark rate to 1.5% from 1.25%, according to economists.
The Swiss franc declined after data showed retail sales fell 4.1% in May from a year earlier. The Swiss currency has advanced 9.3% versus the dollar this year as investors sought a haven amid the euro-area debt crisis.
EUR/USD: the pair shown low in $1.4490 area. Later the rate receded and finished session in $1.4540 area.
GBP/USD: the pair holds $1.6050-$ 1.6140.
USD/JPY: the pair holds Y80.50-Y80.90.This morning sees the release of the final services PMIs from the main European states all expected to confirm the preliminary releases, with France at 0648GMT (56.7), Germany at 0653GMT (58.3) and the EMU data at 0658GMT (54.2).
European data then rounds off at 0900GMT with EMU retail trade data for May.
The UK data focus for the week remains on the PMI surveys. Friday's manufacturing PMI release showed what had been the one bright spot in the UK economic outlook coming rapidly off the boil, while the construction sector PMI on Monday came in above consensus but failed toimpress the markets amid some hopes for a higher number cisrulating in the morning. Services PMI is out at 0828GMT on Tuesday, completing the set for June and is expected to show a slight decline to 53.5 from 53.8
US data starts at 1400GMT, US factory orders are expected to increase 1.0% in May on the already reported 1.9% increase in durable goods orders.