:: United States Dollar: Hopes started to rise yesterday that a Greek deal was imminent. According to euro officials yesterday finance ministers in the EZ are ready to approve a second Greek bailout package by Monday. U.S. unemployment claims data and Philly Fed Manufacturing data came in better than expected too which supported improved risk sentiment. The USD has weakened against a range of major currencies as a result, including the pound. GBP/USD pushed back through the 1.5800 level yesterday, buoyed also by the more hawkish tone of the Bank of England earlier in the week. It traded to a high of 1.5817 overnight and opens this morning at 1.5800. Headlines from Europe and Greece will continue to be the driver although UK retail sales and US CPI figures are due for release today.

- We expect a range today in the GBP/USD rate of 1.5760 to 1.5880

:: Euro: EUR/USD has rallied from sub 1.3000 to a high of 1.3150 over the last 24 hours on increased expectations that a deal for a Greek bailout will be agreed on Monday. Reuters has reported a quote from an EZ official: "we are almost there. Unless someone really comes up with an idea to undermine the whole deal, it should be approved on Monday." That could be the sticking point but investors are seemingly getting used to disappointment on this issue. As it did with GBP/USD, the better than expected US data also supported this move higher in EUR/USD yesterday. It has held on to these gains in a very quiet Asian session and opens this morning at 1.3140. As investors agonised over a possible Greek deal yesterday GBP/EUR managed to trade to a high of 1.2080. It has settled back this morning as confidence in a deal improves and trades at 1.2040 currently.

- We expect a range today in the GBP/EUR rate of 1.1990 to 1.2080

:: Aussie and Kiwi Dollars: The NZD got a boost overnight after RBNZ Governor Bollard said that the GDP of New Zealand could be as much as 10% higher if they were to adopt GDP calculations and factors used by other countries such as Australia. NZD/USD traded to a high of 0.8381 overnight on the news whilst it also received some support from the selloff in the USD yesterday. The range in AUD/USD meanwhile has been fairly steady. It has pushed slowly higher over the last day and opens this morning at 1.0745. The NZD is stronger vs. the pound this morning too and GBP/NZD sits at 1.8915 currently. GBP/AUD opens the session at 1.4680.

- We expect a range today in the GBP/AUD rate of 1.4610 to 1.4740

- We expect a range today in the GBP/NZD rate of 1.8860 to 1.9000

:: Data Releases:

• AUD: No data due today
• EUR: Current Account
• GBP: Retail Sales
• NZD: No data due today
• USD: CPI, CB Leading Index