Euro shows decline amid Greek talks concerns

Yesterday, Papademos and political leaders of three parties agreed to make further budget-cutting measures equal to 1.5% of GDP, yet they will continue talks today to flesh out details as well as other to discuss measures demanded by international lenders to grant Greece a second aid fund; specifically, bank recapitalization framework, wage cuts and measures to enhance competitiveness.

Papademos will also conduct talks today with the troika on details of the needed spending cuts, while a government official said yesterday Greece still must hammer out details of fiscal measures for this year.

Greece is set to sell 625 million euros of 26-week notes today, where the auction was supposed to take place on February 10.

Regarding fundamentals, a German industrial production added to worries as German industrial production plummeted 2.9% in December from a revised of 0.0%, while, on the yearly basis, the reading advanced 0.9%, yet it came below a revised of 4.4%.

Concerning the EUR/USD pair, it fell on the daily basis to trade around 1.3120, after recording a high of 1.3167 and a low of 1.3087.

The trading range for today is among key support at 1.2860 and key resistance at 1.3315.

The U.S. dollar, on the other hand, rebounded slightly against a basket of major currencies, where the dollar index rose to 79.10 compared with the day's opening level of 78.04.

The USD/JPY rose significantly after a report showed Japan adopted so-called stealth intervention to depreciate its currency in November.

Currently, the pair is trading around 76.75 after reaching a high of 76.79 and a low of 76.50, where the trading range for today is among key support at 75.50 and key resistance now at 77.90.

Moving to the GBP/USD pair, it is currently traded lower around 1.5812 after touching a high of 1.5838 and a low of 1.5790, where the pair has followed by the general sentiment which is fueled worries from Greece, thereby lowering demand on high-yielding currencies.

The trading range for today is among key support at 1.5585 and key resistance at 1.5975.