More Risk aversion in Asia as traders made preparations for Greece euro exit - after some confusion whether former Greek PM Papademos did or did not say about exit preparations. EUR, AUD, NZD, Cross/JPY started the day under pressure, but USD/JPY, Cross/JPY traders were reluctant to sell ahead of BoJ decision - risk event - in case BoJ eased monetary policy further.

A familiar look to markets as we hit midweek, once again with the UK having most interest on the data and events front, while the auction calendars are given a miss by the peripheral Eurozone economies. The latest 'informal' EU talks begin with Germany's intransigence on the idea of Eurozone bonds backed up by Austria and the Netherlands to leave any wriggle room for Greece on the current austerity agreement the real focus of the debate even with the outcome of next month's election far from clear.

US indices closed broadly flat despite a positive start and an increase in existing home sales in April on concern about Greece. The semiconductors and materials sectors traded lower while the diversified financials and consumer durables & apparel sectors gained ground.

Posted by Mike Moloney | Account Executive