Rumors of Greece requesting an extension on the ESM facility from creditors was quickly dismissed, with Germany throwing cold water on the idea after the Greeks announced through official channels that the IMF obligations would not be repaid on time. The brief rally in rally assets quickly reversed lower as news of the rejection sent stocks tumbling and investors scrambling into the dollar. The upcoming referendum on July 5th is the next major event to watch, but does not necessarily mean an exit from the Euro Area in the event of a “no” vote. Meanwhile, the Euro Area economy continues to experience protracted headwinds as evidenced by the downtick in the consumer price index and staggering unemployment which sits at 11.10%. Annualized CPI continues to trend back towards deflationary territory, with the measure falling from 0.30% to 0.20%, raising expectations for expanded quantitative easing measures from the European Central Bank.