ForexLive US wrap: Choppy waiting game

NAHB sentiment index falls to 14 from 15 French foreign minister: Collapse of euro zone would mean collapse of Europe Ex-BOE Howard Davies: It's too late for Greece; Greece tumbling out of control Obama lays out deficit reduction plan: $2 spending cuts for $1 in tax hikes Geithner touts comprehensive tax reform Merkel wants global financial transaction tax; will settle for European tax Greek conference call with Troika "substantive and productive" Greece says close to a deal with Troika FT: Seimens pulls EUR 500 mln from French bank; has EUR 4-6 bln on depo with ECB, bypassing German banks S&P 500 falls 1% to 1204 US 10-year note yield falls 10 bp to 1.955% Gold falls $62 to $1780; oil falls $2.12 to $85.85 EUR/USD traded in choppy fashion today, falling to 1.3586 in US morning trade on disappointment that nothing of substance came from Friday's EcoFin meeting in Poland. Prior to the slide to session lows, 1.3630/35 acted as a good support level intraday amid rumors of Asian CB buying in that area. A move back above that level off the lows prompted a flurry of short-covering. Hopes for a deal on Greek bailout terms from the Trioka spurred a rally to 1.3719 (testing downtrend resistance) before falling back to 1.3685 at the close. The Siemens headline was a negative for the euro late. Looking ahead to Tuesday, another Troika conference call is awaited. Wednesday brings the FOMC decision. USD/JPY was crushed in early NY trade on sales of USD/JPY, EUR/JPY and GBP/JPY by momentum accounts. A failure of EUR/JPY to break 103.90 support lead to a short-covering bounce, We end the day at 104.75. Strong buying of the dollar index was seen this morning with a generally risk averse-tone across the equity, commodities and bond markets. AUD fell to 1.0168 before bouncing to close at 1.0220. USD/CAD rose as high as 0.9922 before fading to 0.9897 at the close.