Small Gains: The dollar index is just off its best levels of the session, trading 75.35. If the greenback is able to push above the 76.00 level a move to 78.00 is not out of the question. EURUSD is down 50 pips at 1.4215 where it is testing its 100-day moving average. Yesterday's late day rally on the reports of a 5-yr Greek austerity plan ran the single currency off the 1.41 level. The German Ifo Business Climate (114.5 actual v. 113.6 expected) topped estimates and provided a rally up to the 1.43 area before giving up those gains and slipping back to pre-data levels. GBPUSD is flat at 1.6015 following remarks from Bank of England Governor Mervyn King. Mr. King said the biggest threat to the UK economy is the debt crisis in Europe. USDCHF is holding a small loss of 20 pips near .8355 and trades just above its all-time low of .8327. It appears as though it is only a matter of time before a new low is reached.
USDJPY is easing back towards the 80.00 level with today 25 pip drop. The pair trades 80.15 after hitting 80.60 overnight and is surely being followed closely by the Bank of Japan and Ministry of Finance. AUDUSD broke 1.05 support during yesterday's sell off but quickly moved back into its range on news of the Greek austerity plan. The pair trades up more than 30 pips today and is back up to 1.0565. The Chinese renminbi settled weaker at 6.4748.
