The US dollar remained better bid as the Greek debt problems continued to see better sellers of Euros on rallies throughout the NY session despite what is seemingly a better tone to risk. US equities rallied a smart 0.7% on the day but the headlines remain mixed with regards to any resolution to the Greek situation and the amount of bureaucrats opining on the matter remained quite staggering. Germany and France are now both calling for IMF involvement and it looks as though some sort of joint EU-IMF plan could emerge eventually. The EU summit up this Thursday has garnered much attention but we saw on the news wires in early NY that EU leaders are aiming to present some sort of compromise on the bailout before then. If nothing less, expect the headlines over the next few days to elicit some heightened volatility in the common currency.
US economic data was once again on the light side and provided little impetus to the price action. Existing home sales were about in line with expectations, printing a 5.02 million unit annualized rate in February on the heels of a 5.05M pace the prior month. The extended homebuyer tax credit looks be having little in the way of impact on the housing market and this remains a concern as we enter the peak period for sales. On the policy front, San Francisco Fed President Yellen offered some dovish comments. She noted that while the job market is turning around, the US economy may operate below potential for several years to come. She also affirmed that it is not yet time to tighten monetary policy. Despite not being a voting member on the FOMC this year, her comments are noteworthy as she is deemed to be at the top of the list to replace outgoing Fed Vice Chair Don Kohn. Given her dovish tilt, her nomination and confirmation for this post would not materially alter the make-up of the Fed, however.