Dollar Mixed as Greek Talks Sap Momentum

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. NEW YORK (BBH FX Strategy) -- The dollar is currently mixed against the majors and EMs as the lack of progress on Greek debt talks is again sapping momentum from the market.

The euro is trading lower 1.3122, up marginally from the low of 1.308 seen during the European session. We still see support near 1.300, with resistance near 1.32. Sterling made an attempt at higher levels on UK clearer demand, but fell short of 1.5840, with sterling currently trading at 1.581. Resistance is seen in the $1.5880 to $1.5900 area.

Meanwhile, the Australian dollar is consolidating after marking six-month highs of 1.0823 following the Reserve Bank of Australia's surprise move to keep rates on hold at 4.25%. The yen is down 0.25% against the dollar after the Ministry of Finance revealed it carried out fourth-quarter intervention. Resistance is seen near 76.90 and a break of it could see a quick move to 77.40.

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Nothing new today out of Greece as talks are set to continue this week. While Greece does not have to meet the big debt maturity until March 20, procedural and legal issues suggest the nation has until mid-February to reach agreement. As such, real deadline is looming despite the fact that deadlines have not meant a lot in recent weeks. In the near-term, the Greek premier is scheduled to meet today with the three leaders of the ruling government regarding the implementation of additional fiscal measures needed to secure the second EU/IMF bailout.

December data out of Germany was much weaker than expected, and comes just as German unions are undergoing annual wage negotiations. After some years of weak wage settlements due to the crisis, it appears that German workers are set to boost demands for higher wages this time around.

As expected, exports contracted in Taiwan for the first time since late 2009, falling by 16.8% year-over-year in January. Imports, however, contracted by less than expected, falling by 11.9% year over year.