Greece ended up agreeing to a four-month extension despite its request for a six-month one; the news removed the threat of an immediate exit from the euro zone and spurred some positivity in the market. On Monday, however, Greece still has to submit a full list of reforms that will take place during the bailout period. The euro was steady early on Monday, around $1.37. The only major news for the day is the German IFO Business Climate data expected at 09:00 GMT.
Many Asian markets were closed last week and early this week due to the Lunar New Year holidays but market activity should pick up by Wednesday when the Chinese markets will reopen as well. The Australian market opened higher on Sunday, with Sydney200 (S&P/ASX 200) up 0.5% since Friday. The Australian index reached its highest level last week since May of 2008.
In focus this week, Fed Chair Yellen’s comments as she will testify at the Semiannual Monetary Policy Report in Washington DC on Tuesday at 15:00 GMT. Extra attention will be paid following last week’s Fed meeting minutes which came out more dovish than was expected. The US dollar has been trading steadily versus the euro and the Japanese yen, just like gold has been steady trading around its seven-week low.