The US dollar was significantly higher against most of the majors as Greece failed to form a government and demand for safety persisted amid elevated uncertainty. GBP/USD is currently below the 1.60 big figure, AUD/USD continues to trade below parity, and EUR/USD is currently around 1.2725 and approaching the 2012 lows as the greenback strengthens. The dollar index is currently higher by about +0.83% on the session as it approaches the 2012 highs.

There was a slew of economic data out of the US today which showed slowing inflation, the weakest retail sales growth of the year, and a stronger regional manufacturing index and housing market index. April CPI figures as expected with the m/m headline reading was unchanged and the core monthly reading showed steady inflation of 0.2%. Yearly CPI growth slowed to 2.3% as expected from the prior 2.7% and the y/y core reading was steady at 2.3%. The May Empire manufacturing index was stronger than forecast with a print of 17.09 from the prior 6.56 (cons. 9.00) and headline retail sales growth slowed to 0.1% in April as expected from the prior 0.7%. Also, the NAHB housing market index rose by more than anticipated in May to 29 (cons. 26, prior 25) and March business inventories grew by 0.3% (cons. 0.4%).

The release of Euro zone GDP figures which showed that the region averted a technical recession with no change in growth in Q1 did little to support the euro as the focus remained on the political situation in Greece. Leaders could not agree on a government and news that new elections will be held in June sent the euro lower. EU officials continued to express their preference for Greece to stay in the euro zone, however the country is moving closer to an exit as political disruptions may prevent the nation from successfully implementing its austerity program. This weighed heavily on the euro which fell below the 1.28 figure to trade to its lowest level since January.

U.S. equities finished in the red with the DJIA closing lower by about -0.50% while the S&P 500 ended the day down by about -0.57%. Commodities also continued their descent as the dollar gained with gold, silver, and oil currently down by -0.90%, -1.64%, and -1.74% respectively.

Due out of the Asia/Pacific session are Japanese machine orders for March, the March tertiary industry index, Australia's May Westpac consumer confidence reading, and 1Q wage cost index.