EU's Moscovici: Hopes for deal on Greece within coming days

Good Morning,

- The euro trade stable and held yesterday’s gains on upbeat euro zone inflation data and on hopes that Greece deal.

- Growth in the Spanish service sector continued at a strong pace during May, although rises in activity and new orders were slightly weaker than the highs seen in April. Higher business requirements led companies to increase employment at the sharpest pace since September 2007.

- The ECB, the European Commission and the IMF agreed on the terms of a cash-for-reform deal to be put to Greece in a bid to conclude four months of debt stalemate , now it’s up to Greece Government to accept or not… It was far from clear if the leftist government would accept the plan, but markets took it as an encouraging step forward.

- EU’s Moscovici: Hopes for deal on Greece within coming days.

- France's Macron says he's confident a deal with Greece can be reached.

- SYRIZA Parl’t Spokesman: If there is no prospect of Deal, Greece will not make June IMF payment.

- U.S. Treasury yields spiked to two-week highs overnight after German Bund yields soared yesterday on stronger-than-expected euro zone inflation data. Consumer prices rose 0.3 percent year-on-year in May, beating forecasts for a 0.2 percent increase.

- The annual pace of UK house price growth slowed to 4.6% in May. This resumes the gradual downward trend that had been in evidence since the summer of 2014 , which was briefly interrupted in April when price growth edged up to 5.2% from 5.1% in March. Annual house price growth is now running at less than half the pace prevailing in mid - 2014.

- Credit Agricole on USD: The USD experienced one of its biggest oneday selloffs in nearly two years yesterday, declining over 1.4% based on the DXY. The move reflects a combination of factors, ranging from better-thanexpected European data to disappointing data in the US and hopes that Greece and its creditors can finally strike a deal. Most importantly, we think market positioning has played a key role in the move, especially ahead of key risks events later this week. For one thing, the better-than-expected inflation data does not diminish the threat of deflation in the EZ. Today’s focus shifts to data: ADP, trade and service sector ISMs. The releases will help to fine-tune the streets’ estimates for NFP but could also help the USD recover from yesterday’s squeeze, which comes on the heels of a 4.0% rally in the DXY over the past two weeks.

- Australia's economy expanded 2.3 percent in the first quarter from the year-ago period, beating forecasts and pushing up the currency.

- BOJ's Shirai: Bank of Japan can hold policy steady now but does not rule out further action in the future, must act if path towards hitting price target is clearly disrupted, probability of further easing is low based on my outlook. Not in a position to talk of the positives/negatives of weak yen.

- New business in Japan service sector expands at quickest pace since November 2014.

- HSBC China Composite PMI™ data (which covers both manufacturing and services) signaled the thirteenth successive monthly expansion of Chinese business activity in May.

- Crude oil prices fell as oversupply weighed on markets, with OPEC not expected to announce a production cut at its meeting on Friday. Core Gulf members of the Organization of the Petroleum Exporting Countries (OPEC), have a consensus to maintain the group's oil output at its meeting this week, a senior Gulf OPEC delegate told Reuters on Tuesday.

- Watch today: Eurozone retail sales, US jobs & US services sector.

Have a nice Day!