The overnight session was highlighted by the Bank of England as expected added a further 50 billion pounds to the asset repurchase scheme.  Also overnight monthly manufacturing production convincingly outperformed estimates coming in at 1% versus 0.3% as the consensus.  The UK economic performance of late has more positive than expected and this will lessen the need for a further round of quantitative easing in May with this new round ends.  The initial manufacturing data did push the Pound up versus the US dollar to 1.58845, but following the next round of QE and flat night on US equities the pound retreated back to 1.58162 pretty much equal to where it was on the close of the US session this time yesterday. 

The Euro was well performed overnight as finally Greek leaders reached agreement with the Trioka on austerity which should grant them access to the 130 Billion Euro rescue fund.  The Euro managed to break through the 1.33 USD mark a couple of times, settling just below at 1.3285 for the last few hours.  The ECB like the BOE kept rates on hold, after they remained on hold at the previous meeting at 1%.  In line with what the Bank of Japan had hoped for, the Yen also depreciated for another session and sits at USDJPY 77.68 surging for the entire month of February so far.  The carry trade has been mentioned, but Greek agreement and BOJ intervention threats have played a big part in the move back towards 78 Yen.

The Australian dollar starts another morning at just below 1.08 a level it has begun the local session for the 3rd straight day.  And like the last few days global equities were mixed give the risk associated currency little direction for a convincing break in either direction.  We do have the quarterly RBA monetary policy statement but don't expect it to give any extra weight to rates direction. Like last month we expect the Chinese trade balance figure to be the key traded point of the day with January's outperformance helping change market direction last time.  At the time of writing the Australian dollar is at 1.0767 USD.