The U.S. dollar traded mixed against the most major currencies. There has been released no major economic reports from the U.S. today.

The euro traded higher against the U.S. dollar, benefited from the better-than-expected German Ifo business climate index. The index rose to 106.7 in January from 105.5 in December, exceeding expectations for a rise to 106.2.

Markets shrugged off concerns over Greek parliament election results. Syriza party won the country's parliament elections on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

The European Central Bank's decision to expand its asset purchase programme to 60 billion euro a month starting from March 2015 until September 2016 still weighed on the euro.

The British pound traded higher 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 fell against the greenback due to Greek parliament election results.

Credit card spending in New Zealand rose 4.5% in December, after a 5.1% gain in November. November's was revised down from a 5.2% increase.

The Australian dollar traded higher against the U.S. dollar in the absence of any major economic reports from Australia. In the overnight trading session, the Aussie traded lower against the greenback due to Greek parliament election results.

Markets in Australia were closed for a public holiday.

The Japanese yen traded lower against the U.S. dollar. In the overnight trading session, the yen traded mixed against the greenback.

Japan's adjusted trade deficit narrowed to ¥712.1 billion in December from a deficit of ¥832.5 billion in November. November's figure was revised up from a deficit of ¥925.01 billion.

The Bank of Japan (BoJ) released its minutes from the latest meeting. The BoJ's board members said that falling oil prices will weigh on inflation in the short-term but will stimulate economy in the long-term.

The Bank of Japan (BoJ) released its minutes from the latest meeting. The BoJ's board members said that falling oil prices will weigh on inflation in the short-term but will stimulate economy in the long-term.

The minutes showed that eight of the BoJ's nine board members voted to continue expanding the monetary base at an annual pace of 80 trillion yen.

Some board members expressed concerns over weak consumer and business sentiment.

Syriza party won the parliament elections in Greece on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

Syriza won 149 seats in the 300-seat parliament. The party has missed an outright majority.

Syriza's leader Alexis Tsipras, who could become Greece's next prime minister, agreed on Monday to team up with a right-wing party Independent Greeks party. The Independent Greeks party also wants to reject the austerity measures imposed on Greece by its creditors.

The Independent Greeks party won 13 seats.

Japan's Finance Ministry released trade data late Sunday. Japan's adjusted trade deficit narrowed to ¥712.1 billion in December from a deficit of ¥832.5 billion in November. November's figure was revised up from a deficit of ¥925.01 billion.

Exports increased 13% in December from a year earlier, while imports rose 1.9%.

A weaker yen helped Japanese exports.

The Swiss National Bank (SNB) released its monetary policy data for the week ending 23 January 2015 on Monday. The report showed that the amount of cash commercial banks hold with the SNB rose last week. Sight deposits increased to 365.486 billion Swiss francs in the week ended January 23 from 339.614 billion francs a week earlier, according to SNB data. That was the biggest weekly increase since July 2013.

Data indicates that the central bank may have intervened after discontinuing the 1.20 per euro exchange rate floor on January 15th.

The SNB declined to comment.

EUR/USD: $1.1400(E539mn), $1.1500(E644mn), $1.1550(E685mn)

USD/JPY: Y116.50($300mn), Y117.00($265mn), Y117.50($310mn), Y118.00($346mn)

GBP/USD: $1.5100(stg278mn)

NZD/USD: $0.7550(N$615mn)

Economic calendar (GMT0):

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

00:00 Australia Bank holiday

02:00 New Zealand Credit Card Spending December +5.2% +4.5%

09:00 Germany IFO - Business Climate January 105.5 106.2 106.7

09:00 Germany IFO - Current Assessment January 110.0 110.6 111.7

09:00 Germany IFO - Expectations January 101.1 106.2 102.0

10:00 Eurozone Eurogroup Meetings

The U.S. dollar traded mixed against the most major currencies. There will be released no major economic reports from the U.S. today.

The euro traded higher against the U.S. dollar, benefited from the better-than-expected German Ifo business climate index. The index rose to 106.7 in January from 105.5 in December, exceeding expectations for a rise to 106.2.

Markets shrugged off concerns over Greek parliament election results. Syriza party won the country's parliament elections on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

The European Central Bank's decision to expand its asset purchase programme to 60 billion euro a month starting from March 2015 until September 2016 still weighed on the euro.

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

EUR/USD: the currency pair rose to $1.1261

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair increased to $118.40

EUR/USD

Offers $1.1450/60, $1.1400, $1.1350, $1.1300

Bids $1.1095, $1.1050

GBP/USD

Offers $$1.5200, $1.5150/60, $1.5100

Bids $1.4950

AUD/USD

Offers $0.8000, $0.7940/50

Bids $0.7850, $0.7815, $0.7800, $0.7750

EUR/JPY

Offers Y135.00, Y134.45/50, Y133.80/00, Y133.45/50

Bids Y132.50, Y132.10/00, Y131.50, Y131.20/00, Y130.50

USD/JPY

Offers Y119.00, Y118.50

Bids Y117.55/50, Y117.10/00, Y116.95/85

EUR/GBP

Offers

Bids stg0.7400

EUR/USD: $1.1400(E539mn), $1.1500(E644mn), $1.1550(E685mn)

USD/JPY: Y116.50($300mn), Y117.00($265mn), Y117.50($310mn), Y118.00($346mn)

GBP/USD: $1.5100(stg278mn)

NZD/USD: $0.7550(N$615mn)

BLOOMBERG

Yuan Posts Biggest Two-Day Loss Since 2008, Nears Band Limit

China's yuan posted the biggest two-day loss since 2008 and sank to a record discount to the central bank's reference rate, nearing the limit of its trading band.

The spot rate traded as much as 1.89 percent weaker than the People's Bank of China's fixing against the dollar and a move to the 2 percent threshold would require the central bank to do one of three things: intervene to support the yuan, cut the reference rate or widen the band. The currency is becoming more volatile as the PBOC gives markets a freer hand in determining the exchange rate at a time when monetary easing in Europe andJapan are bolstering demand for the greenback.

Source: http://www.bloomberg.com/news/2015-01-26/yuan-posts-biggest-two-day-loss-since-2008-nears-band-limit.html

REUTERS

Euro steadies despite Greek worries

(Reuters) - The euro regained a foothold in early deals in London on Monday, investors choosing to take some profit on two days of dramatic losses after the results of elections in Greece sent the single currency to an 11-year low.

The single currency fell as low as $1.1098 after projections showed anti-austerity party Syriza won 149 seats in the 300-seat Greek parliament, setting Athens on a collision course with international lenders and potentially threatening its place in the euro.

However, it had recovered to trade higher on the day at $1.1224 by 0748 GMT. Dealers and analysts in London said the most likely next move was still down but that the European Central Bank's announcement of outright money-printing last week had insulated European markets from the fallout of the Greek vote.

"I think on the day people will look to re-sell 1.1250/60 or less," said Stephen Gallo, European head of FX strategy with Bank of Montreal in London.

Source: http://www.reuters.com/article/2015/01/26/us-markets-forex-idUSKBN0KZ04320150126

BLOOMBERG

Tsipras Wins and Sets Greece on Collision Course With Euro Partners

Greek Prime Minister-elect Alexis Tsipras set up a confrontation with his European peers as he prepared to form a coalition dedicated to ending austerity, saying the era of bowing to international demands for budget cuts is over.

Tsipras issued the challenge to Greece's euro-area partners after his Syriza party won a historic victory in Sunday's elections by harnessing a public backlash against years of belt-tightening, job losses and hardship. Tsipras, who is two seats shy of an absolute majority in Greece's 300-seat chamber according to the latest results from the Interior Ministry, said his priority "will be for Greece and its people to regain their lost dignity."

Even in a fragile coalition, the result hands Tsipras a mandate to confront Greece's austerity program, imposed in return for pledges of 240 billion euros ($269 billion) in aid since May 2010. The challenge now for him is to make good on election pledges including a writedown of Greek debt, while persuading creditors in Berlin and Brussels to keep aid flowing.

Source: http://www.bloomberg.com/news/2015-01-25/syriza-defeats-samaras-to-win-greek-election-exit-poll.html

Today a set of data on Business Climate, Current Assessment and Expectations coming from the German Institut für Wirtschaftsforschung, a research institute, was released at 09:00 GMT. German Business Climate in January improved to the highest in 6 months beating expectations. The Index added 1.7 points from a previous reading of 105.5 to 106.7. Economists expected an increase to 106.2. The solid data eases concerns over the health of Eurozone's biggest and most important economy.

The Current Assessment index improved to 111.7, 1.1 points above expectations of 110.6 points and a previous reading of 110.0.

IFO-Expectations reflecting attitudes toward business prospects improved to 102.0 - missing forecasts of 106.2.

The German DAX 30 is trading close to an all-time high hit on Friday.

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

00:00 Australia Bank holiday

02:00 New Zealand Credit Card Spending December +5.2% +4.5%

The U.S. dollar traded mixed against the most major currencies. The euro dropped to a low at USD1.1097 on concerns the Greek elections result could lead to instability in Europe but recovered during the session. The anti-austerity party Syriza won a decisive victory within two seats of the absolute majority. Alexis Tsirpas,the new Prime Minister, has pledged to keep Greece within the monetary union but wants to renegotiate Greek debt.

The Australian dollar extended losses against the greenback and trading below its lows established in May 2010 as oil continued to decline dampening demand for commodity-currencies. Today markets are closed I Australia due to a bank holiday.

New Zealand's dollar continued its fall and traded at the weakest since 2012 against the greenback currently trading at USD0.7440 closing in on lows hit in July 2012. Credit Card Spending rose at a slower pace in December at +4.5% compared to +5.2% in November.

The Japanese yen traded lower against the greenback on Monday although the Adjusted Merchandise Trade Balance rose from -925.01 to -712.1 billion on Sunday and Japan's exports rose more-than-expected by 12.9% in December driven by a weaker Japanese Yen.

EUR/USD: the euro traded higher against the greenback

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

09:00 Germany IFO - Business Climate January 105.5 106.2

09:00 Germany IFO - Current Assessment January 110.0 110.6

09:00 Germany IFO - Expectations January 101.1 106.2

09:30 United Kingdom BBA Mortgage Approvals December 36.7

10:00 Eurozone Eurogroup Meetings

EUR / USD

Resistance levels (open interest**, contracts)

$1.1513 (1950)

$1.1447 (838)

$1.1369 (789)

Price at time of writing this review: $1.1197

Support levels (open interest**, contracts):

$1.1109 (1972)

$1.1052 (778)

$1.1029 (2738)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 73194 contracts, with the maximum number of contracts with strike price $1,2100 (6575);

- Overall open interest on the PUT options with the expiration date February, 6 is 71014 contracts, with the maximum number of contracts with strike price $1,1700 (6721);

- The ratio of PUT/CALL was 0.97 versus 1.09 from the previous trading day according to data from January, 23

GBP/USD

Resistance levels (open interest**, contracts)

$1.5302 (459)

$1.5204 (867)

$1.5108 (359)

Price at time of writing this review: $1.5011

Support levels (open interest**, contracts):

$1.4893 (1534)

$1.4795 (1175)

$1.4697 (231)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 16093 contracts, with the maximum number of contracts with strike price $1,5600 (1117);

- Overall open interest on the PUT options with the expiration date February, 6 is 16805 contracts, with the maximum number of contracts with strike price $1,5100 (1542);

- The ratio of PUT/CALL was 1.04 versus 1.05 from the previous trading day according to data from January, 23

* - 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 $1,1207 -1,40%

GBP/USD $1,4998 -0,07%

USD/CHF Chf0,8801 +1,05%

USD/JPY Y117,81 -0,57%

EUR/JPY Y132,03 -1,98%

GBP/JPY Y176,68 -0,65%

AUD/USD $0,7918 -1,35%

NZD/USD $0,7455 -0,63%

USD/CAD C$1,2422 +0,35%

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

00:00 Australia Bank holiday

02:00 New Zealand Credit Card Spending December +5.2%

09:00 Germany IFO - Business Climate January 105.5 106.2

09:00 Germany IFO - Current Assessment January 110.0 110.6

09:00 Germany IFO - Expectations January 101.1 106.2

09:30 United Kingdom BBA Mortgage Approvals December 36.7

10:00 Eurozone Eurogroup Meetings