Forex: Monday’s review

Yesterday the euro rose against the dollar on speculation European finance ministers will settle their remaining differences over a Greek bailout. The common currency also strengthened versus the yen and the British pound.

Euro-area finance ministers are set to meet in Brussels to seek agreement on a 130 billion-euro Greek bailout. Talks on Greece’s second aid package in two years will aim to reconcile demands made on Greek politicians, a debt swap among private creditors and the role of the European Central Bank.

European leaders including German Chancellor Angela Merkel want to wrest the common currency out of its crisis amid signs of improvement in the global economy. Yesterday focus has returned to Greece as the threat of economic collapse and exit from the euro has stoked officials’ concern such a scenario may provoke chaos. An agreement is crucial to fend off the region’s first sovereign default as Greece is due to pay off 14.5 billion euros of maturing debt on March 20.

The dollar dropped against most major peers on Chinese measures to sustain economic growth, damping demand for haven assets.

EUR/USD: yesterday the pair rose on a floor of a figure.

GBP/USD: yesterday the pair holds in a range $1.5840-$1.5880.

USD/JPY: yesterday the pair decreased in area Y79.50.

A pick up in activity on Tuesday, as the US markets return after  the Presidents' Day holiday. With eurozone finance minister heading for a few hours sleep after another all-night session, the calendar gets under way outside the EU, when Norges Bank Governor Oystein Olsen is slated to speak at the Foreign Press Association, in Oslo, starting at 0800GMT. Also at 0800GMT, ECB Governing Council member Miguel Angel  Ordonez is to give opening remarks at conference in honor of ex-Bank of Spain Governor Luis Angel Rojo, Madrid. At 1500GMT, the EMU Feb flash consumer morale data is released. The first US data after the holiday is expected at 1430GMT, with the release of the MNI Capital Goods index, followed at 1530GMT, with the release of the MNI Retail Trade Index.