US Holiday Quiet Ahead Of The Greek Storm

U.S. Dollar Trading (USD) the spike higher on Monday morning in global stocks continued to hold for the rest of the trading day but with little action seen in Europe and US. The US was on holiday for Presidents day and commodity markets were closed but at the end of the session we saw a sharp sell off on concerns the bailout plan announced for Greece was not large enough. The Euro (EUR) the EUR/USD is testing 1.3200 in Asia Tuesday as the Greece saga continues to roll on with more negotiations and talk of more money being needed which is spooking the Euro buyers. Looking ahead, expect more Greece Debt deal announcements at any moment.

The Japanese Yen (JPY) continued to be sold across the board and is within striking distance of the Y80 level which so far has held firm. Traders expect stops to be above the key level and for selling near it to prove a real test for the recent rally with a failure prompting a pull back. The Sterling (GBP) traded broadly in line with the EUR/USD although a small rally in EUR/GBP saw the GBP/USD moves slightly mooted and kept to a 50 point range above 1.5800. Australian Dollar (AUD) traded between 1.0750-1.0800 in the European and US sessions but has broken lower on Greece concerns in early Asian trade on Tuesday ahead of RBA Governor Steven’s speech and the RBA minutes from earlier in February. Looking ahead, February RBA minutes at 00:30 GMT

Oil & Gold (XAU) kept to a $5 range above the $1730 level. Oil opened above $105 and spent the day above the key level as Iran tensions continued to support.