10-Yr: +10/32..2.897%.. USD/JPY: 80.25.. EUR/USD: 1.4217
Holding Gains: After settling near 75.00 on Friday the dollar index is holding a modest gain near 75.35. EURUSD is off close to 80 pips after Greek bailout talks failed to produce any results over the weekend. The uncertainty in the euro zone has the single currency back down near its 100-day moving average with important support at 1.40 in play. German PPI (0.0% MoM actual v. 0.2% MoM expected) and the euro zone current account (-EUR5.1 bln actual v. -EUR4.8 bln expected) both missed expectations. GBPUSD is down 30 pips to 1.6165 as it looks to hold 1.61 support. The Rightmove House Price Index rose 0.6% MoM, but has had little impact on trade. A quiet session for USDCHF has the pair lower by 15 pips at .8475.
USDJPY is up 25 pips at 80.30 following the Japanese government announcing its second largest trade deficit in history. The -JPY0.47 trln deficit (-JPY0.54 trln expected) topped expectations, but is still a worrisome sign as the nation continues to recover from the twin natural disasters. The Bank of Japan and Ministry of Finance remain on alert as the pair continues to trade near the critical 80.00 level. AUDUSD is lower by almost 100 pips, and back down near 1.0520. Look for a battle of Aussie bulls and bears at 1.05 support. Should a break down occur the 1.02 area may see some action. The Chinese renminbi was little changed at 6.4730.
