48 Hours to Reach an Agreement
European and Greek leaders are giving themselves 48 hours to hammer out an agreement to allow Greece to meet its financial obligations at the end of the month. The latest proposal submitted by the Greek government seems to have been well received by European leaders, although German Chancellor Angela Merkel underscored that while the proposal is a step in the right direction, very intensive work is still needed. The euro has lost close to 200 points against the greenback since yesterday’s high, and it seems that we will have to deal with this increased volatility until an agreement is finalized.
In terms of economic indicators, once again today they will be primarily from south of the border. At 8:30 a.m. we will have Durable Goods Orders, forecasted to come in lower by 1.0% (May), despite an expanding job market. At 10:00 a.m. we will have New Home Sales (May), with the markets forecasting a 1.2% increase, a much smaller result than the 6.8% recorded in April.
