Greece's Debt Crisis Returns

USD
The Greenback was virtually unchanged yesterday, having traded within a limited range due to the Presidents' Day and as markets are awaiting the Federal Reserve’s semiannual monetary policy report. The U.S. dollar index settled at 101 pips amid lack of U.S. economic data.

Gold
Gold rose moderately yesterday and settled at $1,237 as markets suffered weak liquidity. The yellow metal could hit new highs as Eurozone finance ministers will meet today to seek Greece's third bailout programme.

Elsewhere, the head of the Euro-group, Jeroen Dijsselbloem, said that Eurozone finance ministers decided to send experts back to Athens to negotiate a deal with Greek authorities on the tax, labour and pension reforms needed to disburse new funds under the country's bailout. He also said that the next disbursement of financial aid to Greece, from its euro zone lenders, might not be imminent as talks are still complicated, adding that the target was to secure a deal as soon as possible.

EUR
Euro traded at $1.0615 as traders abandoned the euro due to uncertainty over EU’s economic vision. The common currency was negatively affected by German finance minister’s statements on the Greece crisis.

GBP
The Sterling pound rose yesterday but gains were limited as markets are awaiting the Bank of England's inflation report and Mark Carney's UK inflation speech as the U.K. will begin ‘Brexit’ negotiations with the European Union.

Oil
Also on Monday, oil prices rose moderately, amid optimism over an OPEC cut deal, however growing U.S. output kept price gains in check. And U.S. crude settled at $53.50.

The most important economic events:

GBP BOE Governor Mark Carney Speaks in U.K. Parliament: (GMT 12:00) – Important
USD Markit US Services PMI (FEB P): (GMT 16:45) – Medium- Forecast (55.8) – Previous (55.6).
USD Markit US Composite PMI (FEB P): (GMT 16:45) – Medium- Forecast (N/A) – Previous (55.8).

Disclaimer
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