Euro Hovers at 12-Year Lows as Greek Worries Resurface

 
Snapshot: 

        -Dollar firmer; 10-year Treasury yield at 2.225%; U.S. stock futures weaker; oil futures lower; gold gains
        -Watch for: No major data expected; speech by Fed's Loretta Mester
        News: Early Signs Suggest Stronger Dollar Is Helping World Economy; ECB Buying Starts New Era for Bonds, Euro; Germany Doesn't Expect Eurozone Decision on Greece Monday
        The euro hovered at 12-year lows against the dollar as Greece worries bubbled to the surface again.
        The euro dropped to $1.0856 in early European trading, but fell as low as $1.0671 according to FactSet. The single currency slid to $1.0839 on Friday, which was the lowest since 2003 after the U.S. jobs report exceeded expectations.
        Over the weekend, Greek officials hinted at a referendum if the government is unhappy with terms of the rescue deal from creditors.
        "There may be problems. We can go back to elections. Call a referendum…But, as my prime minister told me, we are not glued to our seats yet," Greek Finance Minister Yanis Varoufakis told Italian newspaper Corriere della Sera on Sunday.
        In Asia, the dollar was higher against the yen, but failed to hang onto the Y121 level - a four-month high - after breaching that level after Friday's strong U.S. jobs report.
        The pound traded at $1.5037 after the report, its lowest level in about a month. It had traded at $1.5238 Thursday.
        The ICE U.S. Dollar Index, a measure of the buck's strength against a basket of six rival currencies, traded at 97.60. On Friday, it finished up 1.3% to 97.63, its highest level in nearly 12 years.
        U.S. Treasury yields were stable in European trade, after Friday's sharp nonfarm payrolls selloff.
        The 10-year cash yield was 2.225%, a couple of basis points below this year's high, helped by the start of the ECB's bond-buying program which is underpinning most core bond markets. The yield differential between the 10-year Treasury and the German equivalent has widened to around 187 basis points, levels last seen around 25 years ago, according to CMC Markets. The possibility of further widening exists as the rate paths between the two regions are set to diverge further.
        Yields in the eurozone hovered close to record lows as investors geared up for ECB stimulus.
        Wall Street looked in no mood to celebrate the sixth anniversary of the bull market on Monday as stock futures fell on the heels of a sharp spiral south late last week.
        Futures for the Dow Jones Industrial Average eased 17 points to 17,831, while those for the S&P 500 index dipped 3 points to 2,067.80. Futures for the Nasdaq-100 index fell 4.5 points to 4,400.50.
        Monday marks the day six years ago - March 9, 2009 - the S&P 500 bottomed out during the financial crisis, closing at 676.53. The index has rallied more than 200% since then, and concerns remain that the market could be moving toward another bubble.
        "The good news is that the stock market's reaction to Friday's employment news reduces the risk of a melt-up in stocks," said Ed Yardeni, chief investment strategist at Yardeni Research, said in a note on Monday.
        "The market needs some time to let earnings catch up with stretched valuations. It also needs some time to get used to monetary normalization, which is now even more likely to start at the June 16-17 meeting of the FOMC," he wrote.
        In commodities, Brent crude oil was down 0.5% at $59.41 a barrel. Gold climbed 0.7% to $1,172.80 an ounce.
        Gold is seen sliding on the back of a strengthening dollar, according to an ANZ report.
        Stronger-than-expected U.S. nonfarm payrolls data at the end of last week strengthened the U.S. currency, which has an inverse correlation with the precious metal.
        "We still expect a price recovery in gold over the medium term," the report said. Gold has sunk below a psychological mark of $1,200/oz after the release of the U.S. nonfarm payroll data.
        Credit-Reporting Giants Agree to Overhaul
        Wrecks Hit Tougher Oil Railcars
        Web-Video Newcomers Undercut YouTube
        Greystar Real Estate to Buy U.K. Student Housing Portfolio From Round Hill Capital
        At Startups, People Are the 'New Infrastructure'
        GM, Wilson Aim to Avert Proxy Fight
        Early Signs Suggest Stronger Dollar Is Helping World Economy
        ECB Buying Starts New Era for Bonds, Euro
        Early Signs Suggest Stronger Dollar Is Helping World Economy
        With the U.S. job machine gathering steam and stimulus measures showing tentative signs of bearing fruit in the eurozone and Japan, the world economy seems to be making the most of a very rapid rise in the dollar's value.
        ECB Buying Starts New Era for Bonds, Euro
        The arrival of the European Central Bank's huge bond-buying plan Monday is forcing investors to prepare for the once unthinkable: paying to hold debt issued by the eurozone's one-time trouble spots--even countries that have recently relied on financial bailouts to stay afloat.
        Germany Doesn't Expect Eurozone Decision on Greece Monday
        Germany doesn't expect eurozone finance ministers to make a decision about financial support for Greece later Monday, with deputy finance minister Steffen Kampeter calling on Athens to be clear about its budget situation and to provide specific reform plans.
        Eurozone Not Viable in Current Form -- Top U.K. Fund Manager
        The eurozone is not viable in its current form, according to Neil Woodford, one of the U.K.'s most highly regarded fund managers.
        German Trade Surplus Narrows Slightly
        Germany's trade surplus narrowed slightly in January in adjusted terms, data from the country's statistics office showed.
        Japan's Growth Revised Down
        Japan's economy grew slower than initially estimated in the October-December quarter, a sign that anemic household spending and business investment are weighing more heavily on the nation's recovery than previously thought.
        OPEC Says Cartel Hurting U.S. Shale Industry
        OPEC's top official said Sunday that the cartel's decision to keep pumping crude in the face of collapsing prices was hurting the U.S. shale-oil industry and that a global pullback on investment could lead to a shortage that will push the market upward again.
        Switzerland Adds Names to Ukraine, Russia Blacklist
        The Swiss government has added 28 people and organizations to a list designed to prevent the country from being used bypass sanctions imposed by the European Union over the crisis in Ukraine.
        Write to paul.larkins@wsj.com
        (END) Dow Jones Newswires

        March 09, 2015 06:50 ET (10:50 GMT)

#FX
#Forex
#EuroHovers
#12YearLows
#GreekWorries
#ECB_Decision