Asian shares pared earlier steep losses on Monday

Good Morning,

- The euro trade under pressure on Monday after Greece missed a self-imposed Sunday deadline for reaching an agreement with its lenders.

- Asian shares pared earlier steep losses on Monday

- Without a deal, Greece risks default or bankruptcy on June 5. Sources close to the talks said Greece and its European creditors agreed on the need to reach a cash-for-reforms deal quickly.

- Greek PM Alexis Tsipras wrote in French newspaper Le Monde that any intransigence wasn’t the fault of his four-month-old administration, a senior German lawmaker said it was down to Greece to adhere to reforms agreed to before Tsipras took power. An international official, who asked not to be identified, said creditors were discussing a deal to be presented to Greece as a way of ending the impasse. “The lack of an agreement so far is not due to the supposed intransigent, uncompromising and incomprehensible Greek stance,” Tsipras said in the article published on Sunday. “It is due to the insistence of certain institutional actors on submitting absurd proposals and displaying a total indifference to the recent democratic choice of the Greek people.”

- The dollar index was up to 97.40. It was within reach of a five-week high of 97.775 set last Wednesday.

- May data pointed to a further gain of momentum in the Spanish manufacturing sector with accelerated growth of output, new orders and employment all recorded. There was another pick up in the rate of cost inflation, leading firms to raise their output prices for the first time in five months. The seasonally adjusted Markit Spain Purchasing Managers’ Index rose to 55.8 in May from 54.2 in April, signaling a sharp improvement in business conditions that was the strongest since April 2007.

- The Swiss franc is too strong but should weaken, the Swiss National Bank's chairman has told a Swiss newspaper, adding that the bank was ready to intervene in foreign exchange markets if necessary, to influence the currency.

- Credit Suisse on EUR/USD: CS stays bearish and short as the “neckline” to the recent breakdown and the 38.2% retracement barrier at 1.1062/67 is capping to keep the trend still lower. "Support moves to 1.0868/65 initially, below which can see a move back to 1.0818/15, with a break here needed to see further weakness to 78.6% retracement support at 1.0674 next, ahead of testing the low end of the former range at 1.0660/28," CS projects. "We would expect an initial hold here. Direct extension through can target 1.0521 next, ahead of the lows back in March at 1.0458," CS adds. In line with this view, CS maintains a short EUR/USD position from 1.0955, with a stop at 1.1067, and a target at 1.0625.

- Against the Japanese yen, the greenback trade stable above at 124 level , holding just under a 12-year peak of 124.46 scaled last week.

- China's official manufacturing Purchasing Managers' Index (PMI) edged up to 50.2 from April's 50.1, matching the expectations of economists polled by Reuters, but also suggested Beijing might have to take additional steps to spur growth. A separate official survey of China's non-manufacturing PMI edged down to 53.2, compared to April's 53.4, showing that growth in the country's services industry cooled last month.

- Crude oil surged nearly 5 percent on Friday but started the week on a subdued note, as rising OPEC output and an expectation that the group would keep production high added to sentiment that the market remained over supplied despite ongoing falls in U.S. rig operations.

Have a nice Week!