The EUR came under intensified selling pressure over concerns that the one-year ECB lending facility maturing on Thursday may spark another funding crisis for European banks. Lingering fears that European plans to slash budget deficits also weighed on the outlook for European growth, adding further pressure on the common currency. In EUR/USD, after failing just shy of 1.2400, the pair slid lower to finish out near 1.2280 in late NY trading. EUR/CHF plunged to new all time lows, dropping below 1.3500 and falling to finish just below 1.3350. In EUR/GBP, the pair dropped below 0.8200 and lost ground to end near 0.8125, its lowest level since late 2008. The dollar was mostly steady against the JPY and held to a narrow range between about 89.10/50. Stock markets saw minor losses, with the S&P losing around -0.2%. Gold prices retreated sharply after attempts to push the metal to a new record high came up short. Gold lost about -$17.50 to close around $1238/oz.
Data out of the US was mostly in line with market forecasts and showed a modest increase in personal spending. May US personal spending rose 0.2% MoM vs. estimates of +0.1%, while personal incomes came up short of forecasts, rising 0.4% instead of the expected +0.5%. Inflationary pressures remain subdued according to the US May PCE reading, which saw core prices rise 0.2% MoM, bringing the YOY core PCE rate to 1.3% from the prior 1.2%.
Ahead in Asia-Pacific trading, May NZ building permits will be reported from Wellington, and in Japan May jobs report is due, along with preliminary May Industrial Production, followed by June small business confidence in the Tokyo afternoon.