Euro Mixed On Greece, Yen Firm After Positive Tankan

Euro remains mixed as markets are closely watching the development in Greece. IMF spokesman Gerry Rice confirmed that Greece missed the EUR 1.5b payment after the deadline and that's the largest missed payment in the fund's history. And, Greece would now only receive further funding from IMF after the arrears are cleared. Meanwhile, Greece has asked for an extension earlier yesterday and IMF will consider "in due course". German Chancellor Angela Merkel rejected further talk with Greece before the July 5 referendum called by Greek prime minister Alexis Tsipras. Merkel said rather bluntly that "We'll negotiate about absolutely nothing before the planned referendum is held."

The Japanese yen remained the strongest major currency this week on risk aversion. Released from Japan, The large manufacturing index rose to 15 in Q1, up from 12. Medium and small manufacturing indices dropped to 2 and 0 respectively. Large non-manufacturing index rose to 23, up from19. Medium and small non-manufacturing indices also improved to 16 and 4 respectively. Overall, large industries index rose to 19, up from 16 while medium and small industries indices were unchanged at 10 and 2. Also, the report showed that large companies expect to increase investment by 9.3% in the 12 months ended March 2016. That's a remarkable improvement over last quarterly survey's figure of -1.2% cut. Also from Japan, PMI manufacturing rose to 50.1 in June.

From China, the official manufacturing PMI was unchanged at 50.2 in June, below expectation of 50.4. Non-manufacturing PMI rose to 53.8 in June. HSBC PMI manufacturing dropped to 49.4 in June. From Australia building approvals rose 2.4% mom in May versus expectation of 1.3% mom.

Looking ahead, development in Greece will remain the focus. Meanwhile, manufacturing data from Swiss, UK and Eurozone will be featured in European session.