Daily Morning Report 16.06.2015

The euro remained under pressure on Tuesday as talks between Greece and its international creditors remained deadlocked and as investors remained cautious ahead of Wednesday’s monetary policy statement from the Federal Reserve.

EUR/USD was last at 1.1269, dipping 0.14% for the day.

Talks between Greece and European officials ended without an agreement on a cash-for-reforms deal over the weekend, fuelling fears over a debt default that would threaten Greece’s future in the eurozone.

Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the International Monetary Fund.

European Central Bank President Mario Draghi said Monday that a Greek default would be “uncharted waters,” but added that he believes policymakers have all the tools to manage the situation.

Investors were looking ahead to a meeting of eurozone finance ministers on Thursday, which was being seen as Greece’s last chance to strike a deal.

The single currency edged higher against the yen, with EUR/JPY at 139.36.

The dollar also pushed higher against the yen, with USD/JPY rising 0.14% to 123.57.

The dollar was boosted after Bank of Japan Governor Haruhiko Kuroda clarified comments he made last week when he described the yen as being “very weak”.

Kuroda said he was not signaling that the currency’s nominal levels were too weak.

Investors were looking ahead to the Fed’s monetary policy statement on Wednesday for any fresh indications on when it may start to hike interest rates.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% to 9518.

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