Yen recovers mildly after suffering steep selloff against dollar today. Released from Japan, national CPI core came in at 0.3% yoy in April, slightly higher than expectation of 0.2% yoy. That was still well below BoJ's 2% inflation target. And the data points to the fact that BoJ's stimulus wasn't entirely effective so far. Tokyo CPI core slowed to 0.2% yoy in May, inline with consensus. Other data from japan were weak. Household spending dropped -1.3% yoy in April versus expectation of 3.1% yoy. The spending data also raised some doubt over the sustainability of economic recovery. Industrial production rose 1.0% mom in April versus expectation of 1.1% mom. Unemployment rate, on the other hand, dropped to 3.3% in April. Technically, USD/JPY could turn into brief sideway consolidation as it lost momentum after hitting key long term resistance of 124.13.
Regarding Greece, IMF chief Christine Lagarde warned that an exit is a "possibility" but said that would "probably not be an end to the euro". Meanwhile, Lagarde sounded pessimistic over the negotiation as "it is very unlikely that we'll reach a comprehensive solution in the coming days". On the other hand, Greek spokesman Gabriel Sakellaridis sounded positive and noted that optimism of reaching a deal before end of May, this Sunday. He said such optimism is "based on the experience of the previous weeks and the progress achieved." The situation will be closely watched before the start of next week and could set the tone for Euro.
Elsewhere, New Zealand building permits dropped -1.7% mom in April. UK Gfk consumer sentiment dropped to 1 in May. Swiss will release Q1 GDP and KOF leading indicator while Eurozone will release M3 in European session. US GDP revision and Canada GDP will be the main focus in US session. US will also release Chicago PMI and U of Michigan sentiment final.