Session Recap: USD mixed. Range trading prevails

Following a long-weekend in the US, FX markets resumed full volume trading but consolidative moves prevail. Sentiment received a boost in the wake of stellar ZEW survey, but wasn´t strong enough to take EUR/USD out of its recent range. While the pound remains vulnerable amid chatter of a possible UK downgrade, the yen strengthened versus the euro and the dollar. The Aussie rose after the RBA minutes, but Loonie´s weakness persisted, with USD/CAD reaching a 7-month high.

Main Headlines in Europe (in chronological order):

Commodities Brief – Precious metals hold onto Asian gains amidst modest rise

Spanish T-Bill auction results – top end of target


Spain meets top end of target at bond auction

Germany: ZEW Survey – Economic Sentiment rises to 48.2 points in February

EMU: ZEW Survey – Economic Sentiment climbs more than expected in February

EMU: Construction Output declines 1.7% in December

French President Hollande -”must give Greece every chance “

European markets cheer positive ZEW survey

Rehn proposes loosening deficit targets for distressed Member States

Bundesbank’s Weidmann – G20 communique important signal that economic weakness can not be fought with protectionism and currency manipulation.

UK unlikely to be downgraded before budget