EUR/USD
The euro took currency traders on a wild rollercoaster ride on Monday, dipping below 1.10 in overnight before rebounding sharply as Greece moved closer to a default on its sovereign debt and a subsequent exit from the euro zone. Greece issued a decree imposing capital controls and shutting banks on Monday in Athens. Banks will be closed until at least July 6 and there will be a daily cash withdrawal limit of 60 euros ($66). The move comes after the most recent round of negotiations over aid between Prime Minister Alexis Tsipras, European Union finance officials and the IMF broke down, with Tsipras pledging to put creditors’ demands to a referendum July 5. Meanwhile, Standard & Poor's downgraded Greece's credit to a CCC- from a previous rating of CCC. Unless Greece improves its economic outlook immeasurably, S&P indicated the nation is inevitably headed toward a default, adding that there is a 50-50 chance the nation will leave the euro.
GBP/USD
The dollar remained broadly higher gainst the pound on Monday, as concerns over a potential Greece default continued to weigh. In economic news, data showed that total U.K. net lending to individuals increased by ₤3.1 billion last month, below forecasts for ₤3.3 billion and up from ₤2.9 billion in April.
USD/JPY
The dollar was lower against the yen on Monday, as the industrial production slid 2.2% month-on-month in May, more than the 0.8% expected decline, while retail sales rose 3.0%, better than the 2.3% gain seen in May year-on-year. In annual general meeting of the Bank for International Settlements in Switzerland, Kuroda said that Japan's consumer inflation has slipped back to around zero due partly to "the temporary influence of low oil prices. While our projection is that inflation will be in the neighborhood of 2% most likely around the April-September period of 2016, the risks to that scenario cannot be ignored, particularly when the global economy is full of uncertainty, including over geopolitical factors, he added.
