The U.S. dollar traded higher against the most major currencies in the absence of any major economic reports from the U.S.

The euro traded lower against the U.S. dollar as concerns over Greek exit from the Eurozone weighed on the euro. The euro group of finance ministers will meet in Brussels later in the day. Greece's Finance Minister Yanis Varoufakis is expected to present new reform proposals.

Investors speculate that the European Commission could extend Greece's existing bailout program. But German Finance Minister Wolfgang Schaeuble said today that there are no plans for a new agreement.

The British pound fell against the U.S. dollar in the absence of any major economic reports from the U.K.

The New Zealand dollar traded lower against the U.S. dollar. In the overnight trading session, the kiwi traded higher against the greenback in the absence of any major economic reports from New Zealand.

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie traded mixed against the greenback despite the solid economic data from Australia. The Melbourne Institute and Westpac Bank released its consumer sentiment index for Australia on late Tuesday. The consumer sentiment index for Australia increased 8.0% in February, after a 2.4% rise in January. That was the largest monthly increase since September 2011.

The increase was driven by interest rate cut by the Reserve Bank of Australia and falling fuel prices.

Home loans in Australia climbed 2.7% in December, exceeding expectations for a 2.3% rise, after a 0.4% decrease in November. November's figure was revised up from a 0.7% drop.

The Japanese yen dropped against the U.S. dollar. In the overnight trading session, the yen declined against the greenback on comments by the Bank of Japan Governor Haruhiko Kuroda. He said at this week's Group of 20 (G20) meetings in Istanbul that there no criticism of the Bank of Japan's monetary easing program, indicating confidence to continue monetary stimulus measures.

The Australian Bureau of Statistics released its home loans data on Wednesday. Home loans in Australia climbed 2.7% in December, exceeding expectations for a 2.3% rise, after a 0.4% decrease in November. November's figure was revised up from a 0.7% drop.

Investment lending climbed 6.0% in December, after 2.2% decline in November.

The Reserve Bank of Australia introduced new guidelines for the supervision of investor lending in December.

The Melbourne Institute and Westpac Bank released its consumer sentiment index for Australia on late Tuesday. The consumer sentiment index for Australia increased 8.0% in February, after a 2.4% rise in January. That was the largest monthly increase since September 2011.

The increase was driven by interest rate cut by the Reserve Bank of Australia and falling fuel prices.

The Bank of Japan (BoJ) Governor Haruhiko Kuroda said at this week's Group of 20 (G20) meetings in Istanbul that there no criticism of the Bank of Japan's monetary easing program, indicating confidence to continue monetary stimulus measures.

The BoJ governor noted that "Japan will make positive contributions not only to its own economy but to the global economy" if Japan's inflation will achieve 2%.

Kuroda pointed out that G20 nations have confirmed that each central bank can use appropriate monetary policy.

Greece's deputy foreign minister Nikos Chountis said on Tuesday that Russia and China had already offered financial support to Greece.

Russia's Finance Minister Anton Siluanov said that Russia hasn't received a request for help from Greece. He noted that Russia could only provide Greece with rubles.

EUR/USD: $1.1250(E223mn), $1.1295-1.1300(E1.1bn), $1.1450(E269mn), $1.1470(E433mn)

USD/JPY: Y118.50($272mn), Y119.00($1.2bn), Y119.50-55($719mn), Y120.00($480mn)

EUR/JPY: Y135.00(E554mn)

GBP/USD: $1.5100(Gbp1.6bn), $1.5225(Gbp338mn), $1.5300(Gbp833mn), $1.5400(Gbp290mn)

AUD/USD: $0.7750(A$200mn)

USD/CAD: C$1.2300($1.0bn), C$1.2445-60($630mn)

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:00 Japan Bank holiday

00:30 Australia Home Loans December -0.4% Revised From -0.7% +2.3% +2.7%

The U.S. dollar traded higher against the most major currencies in the absence of any major economic reports from the U.S.

The euro traded lower against the U.S. dollar as concerns over Greek exit from the Eurozone weighed on the euro. The euro group of finance ministers will meet in Brussels later in the day. Greece's Finance Minister Yanis Varoufakis is expected to present new reform proposals.

Investors speculate that the European Commission could extend Greece's existing bailout program. But German Finance Minister Wolfgang Schaeuble said today that there are no plans for a new agreement.

The British pound rose against the U.S. dollar in the absence of any major economic reports from the U.K.

EUR/USD: the currency pair fell to $1.1288

GBP/USD: the currency pair increased to $1.5298

USD/JPY: the currency pair rose to Y119.95

The most important news that are expected (GMT0):

17:30 Eurozone Eurogroup Meetings

21:30 New Zealand Business NZ PMI January 57.7

22:00 Australia RBA Assist Gov Debelle Speaks

23:50 Japan Core Machinery Orders December +1.3% +2.4%

23:50 Japan Core Machinery Orders, y/y December -14.6% +5.9%

EUR/USD

Offers $1.1410-20, $1.1400, $1.1370, $1.1345/50

Bids $1.1300/290, $1.1275, $1.1260-50

GBP/USD

Offers $1.5400, $1.5380, $1.5350-55, $1.5300/05

Bids $1.5200/197, $1.5155-45, $1.5105/00

AUD/USD

Offers $0.7900, $0.7845/50, $0.7790/00

Bids $0.7700, $0.7655/50, $0.7600

EUR/JPY

Offers Y137.50, Y137.00, Y136.50, Y136.00

Bids Y135.00, Y134.50, Y134.10/00

USD/JPY

Offers Y121.50, Y121.00, Y120.50, Y120.00

Bids Y119.10/00, Y118.50

EUR/GBP

Offers stg0.7495/500

Bids stg0.7385, stg0.7370-68, stg0.7350, stg0.7330/20

EUR/USD: $1.1250(E223mn), $1.1295-1.1300(E1.1bn), $1.1450(E269mn), $1.1470(E433mn)

USD/JPY: Y118.50($272mn), Y119.00($1.2bn), Y119.50-55($719mn), Y120.00($480mn)

EUR/JPY: Y135.00(E554mn)

GBP/USD: $1.5100(Gbp1.6bn), $1.5225(Gbp338mn), $1.5300(Gbp833mn), $1.5400(Gbp290mn)

AUD/USD: $0.7750(A$200mn)

USD/CAD: C$1.2300($1.0bn), C$1.2445-60($630mn)

BLOOMBERG

Volatility Climbs With Dollar as Germany Douses Greek Optimism

(Bloomberg) -- Currency volatility increased along with the dollar as Germany and Greece head for a showdown that is spurring traders to take out insurance against euro losses.

The premium to protect against a decline in the euro versus the greenback rose to the highest since Jan. 23 -- the day after the European Central Bank announced it would buy sovereign bonds -- before Greece's official creditors hold an emergency meeting. A gauge of the dollar closed at its highest level in data going back to 2004 as comments from regional Federal Reserve presidents suggested policy makers may raise interest rates by mid-year.

"The outcome of the Greek bailout saga is highly uncertain," said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. "You'll get pre-positioning and repositioning after the event, depending on whether it's a positive or negative surprise. It might cause some volatility," and that would support dollar buying, he said.

Source: http://www.bloomberg.com/news/articles/2015-02-11/volatility-climbs-with-dollar-as-germany-douses-greek-optimism

REUTERS

Shifting goal posts on employment may signal slower Fed rate hikes

(Reuters) - Federal Reserve officials are debating a historic shift in one of its core economic gauges that could lead the central bank to move even slower than now thought once it lifts its rates from rock bottom levels.

According to interviews with half a dozen current and former Fed policymakers and staff, the concept that the economy can produce far lower levels of unemployment without stoking inflation is being built into Fed models and becoming increasingly entrenched in the central bank's views.

That shift may not delay the timing of the Fed's first rate increase, still expected in mid-year. But it does offer Chair Janet Yellen a good reason to move at a snail's pace from then on to bring as many people as possible back to work and to push inflation back up to the Fed's 2-percent target.

Source: http://www.reuters.com/article/2015/02/11/us-usa-fed-employment-insight-idUSKBN0LF0AB20150211

REUTERS
Greece's Varoufakis says Greece needs debt haircut: magazine

(Reuters) - Greece's finance minister said Greece would not be able to service its debt in the short-term so would need a haircut, or debt restructuring, he told Germany's Stern magazine.

"If a debt can no longer be paid off then that leads to a haircut," Yanis Varoufakis said in a pre-publication copy of the interview made available on Wednesday.

"What is critical is that Greece's debt cannot be paid off in the near future," he said.

Source: http://www.reuters.com/article/2015/02/11/us-eurozone-greece-varoufakis-idUSKBN0LF0JY20150211

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

00:00 Japan Bank holiday

00:30 Australia Home Loans December -0.4% Revised From -0.7% +2.3% +2.7%

The U.S. dollar traded stronger against most major currencies with better-than-expected U.S. job openings figures. The greenback traded stronger against the euro and the Australian dollar, the yen and sterling and lost against New Zealand's dollar. Job openings climbed to 5.028 million in December from 4.847 million in November. That was the highest level since January 2001. November's figure was revised down from 4.972 million. Analysts had expected job openings to rise to 4.992 million. Wholesale inventories in the U.S. rose 0.1% in December, missing expectations for a 0.2% increase, after a 0.8% gain in November. The Federal Reserve Bank of Richmond President Jeffrey Lacker said on Tuesday that interest rate hike in June is "the attractive option" for him.

Political developments in Greece continue to weigh on the euro ahead of the Eurozone Meetings. Yesterday Prime Minister Alexis Tsipras won a confidence vote in Greek Parliament on his plan to cancel the international bailout.

The Australian dollar lost versus the greenback in Asian trade and gave up some of its early gains. Yesterday the Westpac Consumer Confidence surged 8%, climbing into positive territory for the first time since February 2014 on the rate cut and low fuel prices. Home loans in December rose +2.7%, from revised -0.4% in November. Analysts expected an increase of +2.3%. RBA's Assistant Governor Debelle will speak today at 22:00 GMT.

New Zealand's dollar added traded weaker against the greenback in Asian trade. Markets await data on Business NZ PMI late in the day due at 21:30 GMT.

The Japanese yen traded weaker against the greenback on Wednesday. Japan's makrets are closed today for a bank holiday. Data on Core Machinery Orders is scheduled for 23:50 GMT today.

EUR/USD: the euro traded weaker against the greenback

(time / country / index / period / previous value / forecast)

15:30 U.S. Crude Oil Inventories February +6.3

17:30 Eurozone Eurogroup Meetings

19:00 U.S. Federal budget January 1.9 -2.6

21:30 New Zealand Business NZ PMI January 57.7

Australia RBA Assist Gov Debelle Speaks

23:50 Japan Core Machinery Orders December +1.3% +2.4%

23:50 Japan Core Machinery Orders, y/y December -14.6% +5.9%

EUR / USD

Resistance levels (open interest**, contracts)

$1.1510 (2496)

$1.1439 (765)

$1.1391 (296)

Price at time of writing this review: $1.1320

Support levels (open interest**, contracts):

$1.1246 (3661)

$1.1184 (1903)

$1.1128 (2163)

Comments:

- Overall open interest on the CALL options with the expiration date March, 6 is 100393 contracts, with the maximum number of contracts with strike price $1,1500 (5241);

- Overall open interest on the PUT options with the expiration date March, 6 is 99833 contracts, with the maximum number of contracts with strike price $1,1200 (5536);

- The ratio of PUT/CALL was 0.99 versus 1.00 from the previous trading day according to data from February, 10

GBP/USD

Resistance levels (open interest**, contracts)

$1.5504 (2192)

$1.5407 (1674)

$1.5311 (1929)

Price at time of writing this review: $1.5242

Support levels (open interest**, contracts):

$1.5188 (1673)

$1.5092 (1296)

$1.4995 (2032)

Comments:

- Overall open interest on the CALL options with the expiration date March, 6 is 24919 contracts, with the maximum number of contracts with strike price $1,5500 (2192);

- Overall open interest on the PUT options with the expiration date March, 6 is 30233 contracts, with the maximum number of contracts with strike price $1,5000 (2032);

- The ratio of PUT/CALL was 1.21 versus 1.26 from the previous trading day according to data from February, 10

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1320 -0,04%

GBP/USD $1,5253 +0,25%

USD/CHF Chf0,9261 +0,29%

USD/JPY Y119,42 +0,65%

EUR/JPY Y135,18 +0,62%

GBP/JPY Y182,15 +0,91%

AUD/USD $0,7770 -0,39%

NZD/USD $0,7401 -0,09%

USD/CAD C$1,2586 +0,95%