Greek referendum due this weekend

Today's Highlights

Eurozone finance ministers reject new Greek proposal

US data in focus

Greek referendum due this weekend

FX Market Overview

Greece was once more dominating events in FX space yesterday as the Eurozone finance ministers ruled out any further discussion of an extension of credit to Greece until after Saturdays referendum. In a remarkable U turn Greek Premier Tsipras submitted new Greek proposals to creditors offering some concessions in a bid to reach a deal however this was swiftly rebuffed and Mr Tsipras then gave a televised address outlining his commitment to proceed with a referendum on the proposal offered last week. Apparently this proposal is now no longer on the table so it would seem that this is now a choice between austerity and staying in the Euro or returning the drachma and a deep depression. For now markets will tread water until we get some clarity after the w/e.

Today the focus will be in the United states as we await the Non-Farm payrolls data release. It's the first major release from the states every month and is a general bellwether for the economy. US employment has improved for 6 consecutive months and another solid figure should give the dollar a further boost. 280,000 jobs were added last month and a similar reading is expected later this afternoon , anything less than 200k will see the doves return with a vengeance. Average earning will also be closely watched as they ticked up slightly in May to 2.3%., Any increase would be welcome and would suggest that inflation could be about to pick up which may encourage the Fed to raise rates more quickly.

There is very little in the way of tier 1 macro data ahead of Non-Farm payrolls this afternoon so markets are likely to consolidate or react to comments from European policymakers. This afternoons data will be a welcome distraction form the debacle in Athens but that is likely to be short lived as we await the results of the referendum over the w/e.