EU session review: Euro weakens on delayed agreement for Greek bailout

Data released:
06:00     Germany     PPI (May)    0.0%    0.1%    1.0%
06:00     Germany     PPI (May) Y/Y    6.1%    -    6.4%
08:00     EU(17)     Current account (April) adjusted, bln     -5.1    -    -3.0 (-4.7)

The euro remains under pressure after European governments failed to agree on releasing a loan payment to spare Greece from default on its debts.
“The euro is still very vulnerable due to the uncertainty about the outlook for Greece,” said Niels Christensen, chief currency strategist at Nordea Bank AB. “The risk is that the euro-dollar moves back down to around $1.40 by the end of this week.”
Papandreou kicked off a three-day debate yesterday on a confidence motion in his government. He called for the vote last week after opposition parties rejected pleas for national consensus and the prime minister’s handling of the crisis led to defections from his party. Antonis Samaras, leader of New Democracy, the largest opposition party in Greece, repeated his call for elections.
Greece needs approval of a 78 billion-euro package of budget cuts to ensure the payment of a fifth loan under last year’s 110 billion-euro bailout. Euro-area finance ministers pushed Greece to pass laws to cut the deficit and sell state assets, and left open whether the country will get the full 12 billion euros promised for next month.

EUR/USD recovered to $1.4256 after it tested bids on $1.4100/90. But it failed to set above. Euro retreated to $1.4220.

GBP/USD continues to hold around session highs on $1.6180 after it challenged lows around $1.6106.

USD/JPY fell to Y80.00 before it was back to Y80.38 and remains above the figure.

There is no major data for today.