All attention is on Greece as the deadline for the debt payment draws closer. Greece is expected to reach a deal regarding the payment of IMF loan by tomorrow. Any failure to reach a deal will see a massive sell off on EUR across the board. The currency is trading on a bearish trend because of uncertainties regarding the loan payment and possible “Grexit”.
The USD outperformed all major currencies in the month of May. The biggest losers were JPY and NZD. This was due to the speculation of a possible rate hike by the end of the year. This has seen many investors buying into USD, leaving some currencies very vulnerable.
Aussie and Kiwi are still likely to trade to the downside based on speculations about possible monetary stimulus by the RBA. Recent slump in the commodity prices has also put more downward pressure on these currencies.
The major economic news to watch for this week is the NFP. This will give more insight into when the Fed are more likely to raise the interest rates. Elsewhere, the Eurozone CPI, UK service PMI, Aussie retail sales and CAD ivey PMI