Greece bailed out for the second time

Greece bailed out for the second time. The country is set to receive a fresh E130 billion loan until 2014.
EUR/USD

Range: 1.3186-1.3293
Support: 1.2950
Resistance: 1.3350

After a 13.5 hour meeting at the EU summit the deal was finally agreed for Greece to receive a fresh Euro 130 billion loan until 2014. Although the market initially rallied to just shy of 1.3300 after the announcement with ECB President Draghi calling the deal ‘a very good agreement’ there is still plenty of uncertainty on how much Greek reform will actually be delivered. As the Greek election looms support for Lucas Papademos’ government is running at an all time low with the PM’s popularity declining to 43% from 63% in just December.

GBP/USD
Range: 1.5810 – 1.5859
Support: 1.5780
Resistance: 1.5930

Sterling continues to trade with a slight bid tone as it mirrors the risk trade dominated by developments in Europe. Today see’s the release of the Public Sector Net Borrowing data at 9.30am which is expected to show an improvement to the £109.4 billion deficit released last month. This number could get some extra attention this month after the ratings agency S&P put the UK’s AAA rating on review.

USD/JPY

Range: 79.55-79.82
Support: 79.30
Resistance: 80.25

$/JPY continues to push ahead of the last intervention high of 79.55 as the market is within striking distance of reported barriers at 80.00 and the previous intervention high of 80.25. Whilst the traditional ‘the trend is your friend’scenario may make this pair appealing, with reported option barrier interest along with Japanese exporters around the 80.00 level, price action could start to get a little tired as we edge closer. Bargain hunting from any dips may need to be watched if market positioning becomes a little cleaner especially if the cross JPY trade comes under any pressure.