“[An agreement] is an important result that removes immediate risks of contagion”
– Mario Monti, Italian Prime Minister
European leaders agreed on a 130 billion euro bailout package for Greece on Tuesday after forcing the nation to commit to additional austerity measures and private debt holders to take greater losses.
“The Greek bailout keeps the wheels on the bus”
– James Dunigan, chief investment officer at PNC Wealth Management
U.S. stocks closed mixed on Tuesday after Greece won a second bailout from Europe and the International Monetary Fund.
“The public finances saw clear improvement in the key month of January compared to a year earlier”
– Howard Archer, economist at IHS Global Insight
U.K. government posted the largest budget surplus since 2008 in January.
“It remains unclear if the Greek tragedy has ended permanently”
– Viola Stork, an analyst at Helaba Landesbank Hessen-Thueringen
Swiss trade surplus narrowed to 1.55 billion Swiss francs in January from 2.01 billion francs in December, estimated the Federal Statistical Office.
“There’s consensus that Gree ce is in a tough situation and its outlook is gloomy”
– Takeru Ogihara, chief strategist in Tokyo at Mizuho Trust & Banking Co.
Japanese stocks fell on Tuesday even after euro area finance ministers agreed to a 130 billion euro Greek bailout.
“Euro weakness is likely to stay with us. A bearish EUR/USD call is starting to work out as the market values European Monetary Union tail risks more realistically”
– Morgan Stanley (based on CNBC)
EUR/USD is anticipated to overcome an initial resistance at 1.3235/50 and then fail at 1.3300/22.
“We should have a bit of positive sentiment for the euro over the rest of this week as the market still seems a little short”
– JPMorgan Chase & Co. (based on Bloomberg)
EUR/JPY is currently approaching a formidable resistance situated at 106.02 and may not overcome it at the first try.
“I can’t see [British Pound] breaking through $1.6000 against the dollar in the near-term”
– Adrian Schmidt, currency strategist at Lloyds Banking Group (based on Reuters)
The price tumbled just before hitting 1.5913 (200 day ma) and is now expected to penetrate support at 1.5727.
“The stronger the U.S. economy, the stronger the sense that the interest-rate story will turn around and some of the strength in JPT relative to the USD starts to reverse course”
– Barclays Capital (based on Bloomberg)
Bullish momentum of the currency pair is not weakening and is expected to persist.
Greeks will suffer for five years as part of resolving eurozone crisis
Scale of cuts required to implement rescue package prompted analysts to raise spectre of another debt crisis later this year.
Previously Owned U.S. Home Sales Probably Rose to Highest Since May 2010
Sales of previously owned U.S. houses probably rose in January to the highest level since May 2010, adding to signs the housing market is regaining its footing, economists said before a report today.
China Factory Activity Shrinks for 4th Month: HSBC
China’s manufacturing sector contracted in February for the fourth straight month as new export orders dropped sharply in the face of the euro area debt crisis, the HSBC flash purchasing managers index showed on Wednesday.
“Fed directors noted that recent economic data had improved somewhat, but they were cautious about the outlook and expected only moderate growth over the coming quarters”
– Fed meeting minutes
USD/CHF has retested a tough support at 0.9080/66 and should hold above it for now.