ForexLive North American wrap:
Greece now expects larger deficit
IMF won't decide on Greek bailout until March
Venizelos: PSI must be approved by Feb 29
Papademos: debt swap to be completed around March 10
Greece introduces CAC legislation with 66% threshold
Boston Fed wanted to cut discount rate, KC Fed wanted hike
BOE's Bean: Growth sluggish, inflation to slide
Canadian Dec retail sales -0.2%, as expected
Canadian Dec wholesale trade +0.9% vs +0.6% exp
US 2yr auction at highest yield since July
Oil hits highest since May
S&P 500 up 1 point to 1362
The euro stuck close to 1.3250 after touching 1.3200 in European trading. A large order from a US custodial broker helped the pair to 1.3250 but IMF reluctance to immediately commit gave the market pause, sending it back to 1.3220. Exuberance about US stocks pushed the pair to a US high of 1.3276 but the excitement didn't last and we drifted back to 1.3240.
A large portion of the push higher in EUR/USD was a result of flows in EUR/GBP has specs took a run at large barriers at 0.8400/06. The high of 0.8403 fell just short and risks re-inforcing the recent range.
The flipside is that cable has been under pressure. A rally to 1.5825 was quickly beaten back to 1.5780.
The 9-month high in oil prices cut into sentiment about a US recovery but it was unable to provide any sort of lift to the Canadian dollar. USD/CAD ran into barriers at 0.9975 but has been unable to break through.
Gold caught a bid right from the start of US trading with all commodities getting a lift from the Greek news and China's rate cut. Gold rarely took a step backward, climbing in $7-10 increments to $1758. The recent high of $1762 looms.
