Forex - Yen stronger as investors eye next Greece moves, euro down

Investing.com - The Japanese yen held stronger in early Asia on Monday with investors ready for the back-and-forth in Greek debt talks nearing an end game.

USD/JPY traded at 123.30, down 0.10%, while AUD/USD was quoted flat at 0.7731. EUR/USD was down a sharp 0.32% at 1.225.

Greece remains open to finding a deal with lenders and is prepared to bridge a budget gap as demanded by lenders but not by cutting pensions or raising taxes, the deputy prime minister said on Sunday after a breakdown in negotiations, Reuters reported.

In a statement, Deputy Prime Minister Yannis Dragasakis said the Greek delegation remains ready to resume talks but blamed European lenders for insisting on pension cuts and value-added-tax hikes to close the projected budget gap.The comments came after the European Commission said on Sunday the talks between Greece and its euro zone and IMF creditors did not succeed, leaving the final decision on whether the country is going to default to euro zone finance ministers.

A Greek government official blamed the lenders for the impasse, saying the lenders' representatives at the talks said they were not authorized to negotiate further on the matter.

At 1730 local (0730 GMT) the RBA's Christopher Kent, assistant governor, speaks to the Australian National University in Canberra.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 95.39.

Last week, the dollar ended lower against the other major currencies on Friday as uncertainty over whether the Federal Reserve will offer fresh indications on the timing of interest rate hikes at its upcoming policy meeting weighed.

Data on Friday showed that U.S. consumer confidence improved in June as signs of improvement in the labor market spurred expectations for wage gains.

The preliminary reading of the University of Michigan's consumer sentiment index rose to 94.6 this month from 90.7 in May.

Another report showed that the U.S. producer price index rose 0.5% in May, the largest increase since September 2012.

The data came after other economic reports earlier in the week, including on retail sales, underlined the view that the economy is regaining momentum in the current quarter after a lackluster first quarter.

But the greenback remained under pressure amid concerns that the Fed won’t offer additional information on its monetary policy plans at its next meeting on Wednesday.

The euro continued to remain supported despite ongoing concerns over Greece’s deadlocked debt talks, with time running out to reach cash-for reforms deal in time to avert a default.

The International Monetary Fund said Thursday it was stopping negotiations with Greece due to a lack of progress.

On Friday the Wall Street Journal reported that senior European Union officials had formally discussed a possible Greek debt default for the first time.

In the week ahead, Greece’s debt talks are likely to remain in focus. Investors will also be looking ahead to Wednesday’s Fed rate statement for a clear signal on when it could start to raise interest rates. Monetary policy announcements in Japan and Switzerland will also be closely watched.

On Monday, Switzerland is to release data on producer prices and retail sales.

European Central Bank President Mario Draghi is to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels.

Canada is to publish a report on manufacturing sales.

The U.S. is to publish data on industrial production and manufacturing activity in the New York region.