Asian session: The euro climbed to a three-month high against the yen and reversed losses versus the dollar

00:30 Australia Australia RBA Meeting's Minutes 0

02:00 New Zealand Expected Annual Inflation 2y from now IV quarter +2.8% +2.5%

02:30 Australia RBA's Governor Glenn Stevens Speech 0

04:30 Japan All Industry Activity Index, m/m December -1.1% +1.6% +1.3%

The euro climbed to a three-month high against the yen and reversed losses versus the dollar after euro-area finance ministers reached agreement on a second bailout package for Greece to stave off a default next month. The 17-nation euro advanced to the strongest level in more than a week versus the U.S. currency as Luxembourg’s Jean-Claude Juncker told reporters the deal includes a 53.5 percent writedown for investors in Greek bonds. Finance ministers haggled into the night in Brussels over the terms of new loans to Greece and a possible contribution by central banks, and leaned on investors to accept bigger write- offs in a bond exchange. Debt-swap bonds will have a coupon of 2 percent in 2014, rising to 3 percent in 2015-2020 and to 4.3 percent after that, Juncker said.

The Australian dollar weakened after Australia’s central bank said it has scope to ease monetary policy if needed, after keeping the benchmark interest rate unchanged this month as risks in Europe abated, minutes of its Feb. 7 meeting showed. Policy makers “judged that if demand conditions were to weaken materially, the inflation outlook would provide scope for a further easing in monetary policy,” the minutes released today by the Sydney-based Reserve Bank of Australia showed. “While the financial situation in Europe remained fragile, the likelihood of an extremely bad outcome seemed to have diminished somewhat.”

EUR/USD: during the Asian session the pair gain, showed new month’s high.

GBP/USD: during the Asian session the pair rose.

USD/JPY: during the Asian session the pair gain, coming nearer to month’s high.

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.