- German Ifo improved to 105.9 as exp vs 105.7 prev
- The BIS over the weekend urged central banks to begin withdrawing their accommodative stances, warning that the returns from easy monetary policies were beginning to diminish while dangerous imbalances were building
- Dudley: “The biggest lesson of the financial crisis has been that monetary policy cannot work properly when there is financial instability”
- EU Finance ministers failed to come to an agreement for EU bank recoveries and resolutions. Finances ministers will meet again on Wednesday to try to secure an agreement ahead of the European Summit, which was supposed to sign off the new rules. A failure to agree this week would delay further discussions on banking union, in particular regarding the Single Resolution Mechanism (SRM), which is supposed to be agreed before the ECB takes over the supervision of banks from individual countries that join the banking union. The bail-in rules, which are supposed to be clarified by this directive, are at the core of the SRM. The Commission is supposed to present its proposal for the SRM at the Ecofin meeting on 9 July.
- The UK and China have formally established an FX swap line as part of a move that could help turn London into a critical offshore yuan trading hub. The deal will have a duration of three years and is worth 200B yuan.
- A big win for the LDP+Komeito coalition in Japan with all of their candidates winning a seat. They now have 82 seats, well above the 64 majority. This could be a strong signal for the July 21st upper house elections.
- Mon: German IFO, Mexico Unemployment,
- Tue: US Durable Goods Unemployment, Consumer Confidence, New Home Sales, South Korea Business Survey
- Wed: Mexico Trade Balance, US Oil Inventories,
- Thu: German Unemployment, EU money supply, US Personal Income, Jobless Claims, Pending Home Sales, Japan CPI, IP
- Fri: Italy Business Confidence