The euro fell from eight-week high versus the dollar and tumbled against majors on worries the deals with international lenders and private-sector bondholders are not finalized yet.
Although Greek Prime Minister Lucas Papademos and three political party leaders agreed on measures demanded by lenders to receive a second bailout, euro area finance ministers asked for Parliamentary consent and further austerity measures to grant Greece a second bailout worth 130 billion euros, which makes the deal at risk on possible political frictions and amid a wide-range of protests on wage and pension cuts from Greek citizens.
The finance chiefs asked for a Parliamentary approval, an extra 325 million euros of spending cuts, which will be identified when euro area finance ministers meet again next Wednesday, and thirdly, strong political assurances from the leaders of the coalition parties on the implementation of the program, as mentioned by Jean-Claude Junker, who headed euro area finance ministers in Brussels yesterday, who want to deliver a clear message: In short, no disbursement before implementation.
Greek Finance Minister Evangelos Venizelos said his country is facing the option of leaving or staying in the euro area.
Regarding talks with private-sector bondholders, a draft referred that negations will yield a deal which includes the acceptance of 3.6% borrowing cost on 30-year bills and losses equal to 70% by the creditors, to cut Greece's 350 billion-euro debt by 100 billion euros, where EU Economic and Monetary Affairs Commissioner Olli Rehn saida final draft will be finalized next week.
Concerning the EUR/USD pair, it fell on the daily basis after touching a high of 1.3320 in yesterday's session, where the pair faced strong resistance as it approached near 1.3330, which represents Moving Average 100.
The pair is currently trading around 1.3255, after recording a high of 1.3290 and a low of 1.3236.
The trading range for today is among key support at 1.3045 and key resistance at 1.3455.
The U.S. dollar, on the other hand, rose against a basket of major currencies, where the dollar index surged to a high of 78.81 compared with the day's opening level of 78.57.
The USD/JPY rose for the fourth day, where the yen fell to two-week low versus the green currency after Japanese finance minister said the BoJ intervened last year in the FX market when the pair touched 75.63.
Currently, the pair is trading around 77.70 after reaching a high of 77.74 and a low of 77.50, where the trading range for today is among key support at 76.10 and key resistance now at 78.90.
Later in the day, eyes will be on U.S. trade balance report for January and university of Michigan confidence for February.
Moving to the GBP/USD pair, it is showing some advance, after showing a drop yesterday when policy makers decided to expand the Asset Purchase Facility to 325 billion pounds from 275 billion pounds, which put downside pressure on the pound on expected oversupply in the markets.
The GBP/USD is meanwhile trading around 1.5825 after touching a high of 1.5848 and a low of 1.5764.
The trading range for today is among key support at 1.5515 and key resistance at 1.6075.