NEW YORK ( BBH FX Strategy) -- The dollar is mixed against most major currencies, rising against the yen and the euro while falling against the Antipodeans currencies. With the exception of the yen, moves in foreign exchange market remain constrained to familiar ranges as investors seem to lack near-term conviction.The euro was little changed following the ZEW survey, which was on balance positive with the expectations component coming in at 22.3, above its 10-year MA for the first time since July 2010. The euro is trying to recover from the breakdown at the end of last week but needs to resurface above the $1.3210 area to blunt some of the negative bias. Eurozone spreads are mixed, with Spain the notable under-performer and the two-year yield up 10 basis points. Global stocks are mostly higher with the EuroStoxx 600 up 1.0% led by the nearly 2% rise in banking shares, while Asian shares and U.S. index futures also rose.
Elsewhere, pricing of Greece's new bonds shows investors are not convinced that the Greek drama is over. The new bonds maturing in 2023 to 2042 have price indications of 15 to 30 cents on the euro while Greece's one-year yield hovers near 1,100%, which seems only understandable if one were to think that another default is likely in the next year. Ongoing uncertainty should limit euro upside near-term near 1.32 and keep markets on track to test the 1.2974 February low.