• Governance in Greece is not up to standards
• It can be improved
• Talks between Greece and PSI is still difficult

The EURUSD has broken down on the comments. 

This is according to EUROZONE sources.

Earlier today, there was chatter that the ECB would take a haircut on Greek debt. This comment suggests that they are not necessarily ready to do that.

• Buying MBS likely the best way to stimulate
• Inflation likely to run somewhat below 2%
• Unemployment rate likely to exceed 8% into 2013
• Likely to be well over 7% at the end of 2014
• Sees GDP 2.25% in 2012 adn 2.75% in 2013

With his expectation of growth at 2.25%, this is not enough to stimulate further  declines in Unemployment. Hence if true, the Fed indeed would need to stimulate further.  Bernanke and his supporters on the Fed, are looking at this uptick in the economy as a way to push momentum to where the economy's growth is self sustaining.  The threat is they do too much but I get the feeling that they want to err on the side of too much then too little.  THis should be bearish for the dollar in the long run.

The ECB is reported to have come to an agreement in principle

EU leaders "hoped" for a concrete conclusion to Greek political leaders meeting on Wednesday (that is today).
There was comment out of EFSF that they will probably play significant role in PSI and Greek programme.  The
Bundesbank said that German exposure with haircuts is not critical.  An economic "think Tank" said that German taxpayers may face a 25 bln Euro hit  on Greek sovereign debt. Finally out of Greece there was a report that budget revenues were found lagging by a considerable 1 billion Euros in the 1st month.  According to the report revenues posted a 7% decline compared with January 2011. The budget had targetted a 8.9% annual increase.  The reported also said that VAT receipts posted an 18.7% decline in January compared to a year ago.  The recession is not getting better but worse and more cuts on the way. In other news out of Europe, Germany's Trade Balance worsened to 14.1 B surplus from 14.9B last month, but was better than expectations (13.9 B).  However, both exports and imports showed declines (-4.3% and -3.9% respectively).  This suggests a weaker German economy.   Japan's Current Account surplus came in weaker at 63T and this helped to weaken the JPY (increase the USDJPY) but that gains has not been sustained and the pair is opening the NY sesssion near yesterday's closing level.  The USDJPY reached the 100 day MA on the  move higher (at 77.145. HIgh reached 77.17) but was not able to sustain any momentum above this key technical level.  Swiss employment came in as expected at 3.1%. The EURCHF has gotten a boost from chatter from SNB's Jordan yesterday that they remain committed to maintaining support at the 1.2000 floor.  In economic data today, US Mortgage Applications already came out and showed at 7.5% increase from the previous week. Canada has Housing Starts for January due out at 8:15 AM. The expectations is for a decline to 194.0k from 199.9k last month.  Yesterday, Building Permits rose by a surprising 11.1%.. NZD Unemployment comes out at 4:45 PM today w/ a gain of 0.4%. At 8:30 PM China CPI is due with 4% vs 4.1% YoY expected.