EU Morning Report - EU on hold as Greece stalls

The euro appeared weaker against its major counterparts as no breakthrough was made on the Greek debt deal front. German Chancellor Merkel and French President Sarkozy expressed their disappointment on the progress of the private sector involvement (PSI) and austerity measures talks. The private sector is negotiating the haircut level decided on the 26^th of October, at the same time IMF’s troika is demanding another package of austerity measures. Versus the US dollar, the single currency dropped to 1.3117 from 1.3124, having ranged between 1.3141 and 1.3027. Against the Swiss franc, the euro traded in a narrow band opening at 1.2066 and closing at 1.2063. Market participants already look forward to Friday’s inflation figures for the Swiss economy, as deflationary pressures have been cited by the nation’s central bank as the catalyst to raise the 1.20 floor on EURCHF. Interim Governor of the Swiss National Bank, Jordan, is due to participate at the Swiss-American Chamber of Commerce at 10:45 GMT.

The US dollar recorded minute gains on a day that the US financial calendar was lackluster. Investors are expected to closely monitor the testimony of the Federal Reserve Chairman Bernanke on the economic outlook and federal budget situation before the Senate Budget Committee at 15:00 GMT.

The Australian dollar was soft versus the US dollar overnight, but the decision of the Reserve Bank of Australia to leave its lending rate untouched this morning, send the pair to a 6-month high at 1.0809.

Oil prices fell to 97.15 dollars a barrel from 97.33. Gold dropped to 1720.03 from 1730.54 an ounce against the US dollar. Versus the euro, gold moved down to 1310.10 from 1313.29. Silver opened and closed at 33.63 dollars an ounce.