Regional markets are mostly higher amid optimism over a Greek debt-restructuring plan, though trade is tepid as markets in China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan and Vietnam remain closed for the Lunar New Year holiday. The EUR is lower against the USD and JPY as investors take a more cautious approach toward the single currency while negotiations on Greek debt drag on. The EUR/USD is at 1.3006 from 1.3014 late Monday in New York, the EUR/JPY is at 100.18 from 100.35, and the USD/JPY is at 77.03 from 77.02. The BOJ slashed its growth forecasts for this fiscal year ending in March to a contraction of 0.4% from a 0.3% growth projection it made in October. For the next fiscal year, the central bank now sees growth of 2.0%, down from the previous forecast for 2.2% growth. Still, it decides to leave its policy rate–the unsecured overnight call loan rate–in a 0.0%-0.1% range. Japan’s economy minister said the nation’s shrinking trade surplus is proof that firms are leaving the country. The Reserve Bank of India keeps the key lending rate unchanged at 8.50%, but unexpectedly cuts banks’ cash reserve requirement by 50 bps to support economic growth and ease liquidity. Spot gold is at $1,673.40, down $2.90 from the NY close. March Nymex crude oil futures are up 15 cents at $99.73/bbl.
EasyForexNews Research Team