Spot gold up $7.15 to $1,168.65 and Oil up to $85.33 on weaker dollar

US Dollar:

Global investors are reacting positively to a eurozone package for Greece that could remove linger¬ing uncertainty over the debt laden country’s ability to sell bonds. European stock markets could start higher Monday, especially with US futures also advancing, while investors unload government debt in a shift toward more risk. This saw the dollar sold off across the board against its major rivals with the dollar shedding over one and a half cents against sterling, hitting $1.5486 in Asian trade this morning before dropping back towards the $1.54 level. Even the battered euro made gains against the US currency with over two cents movement against the greenback, pushing EUR/USD over the $1.36 level. US data this week include the latest look at consumer prices, retail sales and consumer sentiment as well as housing and manufacturing data. A host of Federal Re¬serve speakers are on tap, with attention focused on Federal Reserve Chairman Ben Bernanke’s testimony to Congress Wednesday on the economic outlook.
Data 19.00: Federal Budget Balance expected –101.0B from –220.9B.

Pound:

The pound took its cue from outside influences over the weekend, taking time off from the latest focus which has been centralised around the up and coming UK election. Sterling’s recent move higher against the euro, which saw us trade over the 1.1450 levels on Friday has been dented by the EU’s decision to extend to Greece €30bn in loans for 2010. This saw global investors buy the single unit, pushing GBP/EUR back down towards the 1.13 level. But it was not all bad news for sterling, as cable rallied on the renewed interest in risk appetite as the dollar was sold off in the wake of the Greek EU loan, with GBP/USD gaining over a cent and a half to trade over the $1.54 level. Some good economic news as well helped cables cause, as UK profit warnings fell to a record low. Of cause, we can’t ignore the fast approaching UK election, and the weekend saw opposition Con¬servative party seven points ahead of Labour in a ComRes poll,
Data 10.00: CB Leading Index M/M.

Euro:

The euro is higher against major rivals, including the pound and dollar as the eurozone’s backing of Greece puts to rest uncertainty that roiled markets last week. Friday initially saw heavy pressure on the single currency which wasn’t helped by a downgrade of Greece by Fitch from BBB+ to BBB-. The weekend saw a hefty support package for debt-laden Greece which provided the euro some solid ground to stabilize itself on, with the common currency stretching toward $1.40 in the near term. The euro is likely to extend Friday’s rally on the details of the package that emerged over the weekend. The euro has already advanced over the $1.36 level on the dollar and eyes the $1.38 level for its next target. The single currency also took back losses against ster¬ling seen towards the end of last week. A gain of 1.5% was seen in the euros favour to leave EUR/GBP at 0.8847. On the eurozone’s agenda this week, eurozone industrial production figures to be released Wednesday are expected to show that output expanded again in February, fuelling hopes that the eurozone economy re¬sumed its expansion in the first quarter. Data 09.00: Italian Industrial Production 0.1% from 2.6%.

General:

• Thailand was in turmoil over the weekend after 15 people died in fighting between anti-government pro-testors and the military on the streets of the capital, heaping pressure on the economic state of the coun¬try and weakening the country’s currency against its rivals.

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GBP/USD	1.5430
GBP/EUR	1.1332
EUR/USD	1.3620
GBP/JPY	144.09
GBP/AUD	1.6616
GBP/NZD	2.1616
GBP/ZAR	11.1788
GBP/CHF	1.6354
GBP/CAD	1.5536
GBP/SGD	2.1453
GBP/THB	49.77
GBP/HKD	11.9613 red-down; blue-up (snap shot)