IForex Daily : June 02, 2014

 | Jun 15, 2015 06:00AM ET

Developments in Greece were in the spotlight in the past few days as the IMF said Thursday it was stopping negotiations with Greece due to a lack of progress and as senior European Union officials had formally discussed a possible Greek debt default for the first time. The dollar closed last week in negative territory against most currencies despite signs of improvement in the labor market, in consumer confidence and in producer prices. The University of Michigan's consumer sentiment index rose to 94.6 this month from 90.7 in May while producer prices rose 0.5% in May, the largest increase since September 2012. For this week, investors' attention is shifted towards Greece's next steps to avoid a potential debt default and on Wednesday's Fed rate statement for a clear signal on when it could start to raise interest rates. Monetary policy announcements in Japan and Switzerland will also be closely watched.

EUR/USD

The euro ended the week higher against the dollar, despite the fact that a solution for the Greek debt crisis is still far from being achieved, especially without the participation of the IMF in the talks, and with no common ground reached as far as pensions are concerned. On Friday, Greece reportedly submitted a new proposal including debt restructuring, but did not include any pension reforms. The EUR/USD pair received some pressure by U.S. data on Friday, as producer price inflation posted the biggest rise since September 2012 and consumer sentiment rose to 94.6 from 90.7 in May. For today the European Central Bank President Mario Draghi is to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels. In the U.S. front, data on industrial production and manufacturing activity in New York is due later in the day.