Euro remains in range as the week opens even though the Greece situation is once again at a make or break point. Eurozone leaders will meet in a crisis meeting to trying to bridge the gap between Greece and its international creditors as negotiation broke down last week. It's reported that Greece government pitched a last-ditch proposals to creditors over the weekend. European commission spokesman Martin Selmayr said that the new offer was "a good basis for progress" at the summit. Greek prime minister Alexis Tsipras briefed German Chancellor Angela Merkel and French President Francois Holland and EU head Jean-Claude Juncker in a phone call on Sunday. Tsipras will meet with European council head Donal Tusk before the start of the summit in Brussels today.
The proposal included tax hike and spending cuts to meet the budget targets as required by the creditors. According to the proposal, there will be increase on tax for middle and high income earners, levy on companies with higher net income. On the other hand, the early retirement options would be eliminated. The cut in pension would be around 0.5% of GDP, lower than 1% required by international creditors. Instead, there will be some changes to social security systems. Meanwhile, Nonetheless, it's still clear that time is running out for an agreement and Greece will first need to meet the EUR 1.6b payment to IMF by June 30.
In Japan, BoJ governor Haruhiko Kuroda said that the central bank has ample means to achieve the 2% inflation target. Meanwhile, the central said in the monthly report that the economy is expected to continue moderate recovery. Exports would continue to increase moderately too against recovery in overseas economy. Also, private consumption would remain resilient with steady improvement in employment and income. Housing investment is also expected to pick up.
Elsewhere, New Zealand Westpac consumer confidence dropped to 113 in Q2. Eurozone will release consumer confidence later today and US will release existing home sales.