U.S. Dollar Firms Vs. Major Currencies

The U.S. dollar is firmer across the board. The deal worked out by Greece and the European Union, International Monetary Fund and European Central Bank is helping to ease strains in the European debt market, but doesn't appear to have dealt a significant blow to those who think that some form of debt restructuring remains.

Support for the euro is seen near $1.3200, while resistance in the North American session is in the $1.3250-60 area.

Sterling has shown little reaction to the barrage of newspaper endorsements for the Tories or the polls that suggest the Tories have widened the lead to 10 percentage points. Sterling appears comfortable in a $1.5200-$1.5300 range for the very near term. The dollar held support in front of the 20-day moving average near 93.40 yen. Offers are seen in the 94.30-40 yen area.

Many markets were closed in Asia Monday, including Japan, China, Thailand and the Philippines. The markets that were open generally fell under the weight of weakness in commodities and financials. The MSCI Asia-Pacific ex-Japan fell 1.1%. In Europe, London is closed, which is saving it from the 0.5% loss on average being seen near midday in Europe. Financials and industrials are the weakest sectors, with the lone sector higher on the day.

Athens market begins the new month with around a 1% loss, with consumer goods, industrials and financials the hardest hit. Technology, utilities and health care are higher.

Greek bonds continue to recover. The 10-year yield peaked in the middle of last week near 10% yield (closing basis) and Monday is near 8.66%, off another 29 basis points on the session.

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