The Greek situation remains the talk of the currency markets as Euro-zone finance ministers continue negotiations late into the Sunday evening. Alan Greenspan warned that a default by Greece would more than likely drag the U.S economy into recession, his comments although likely to be correct have not had such an effect as the German Chancellor Merkel said she’s willing to compromise on demands for bondholders to carry the burden and asks instead for purely a voluntary participation by private creditors.

The AUDUSD was one of the biggest beneficiaries of the Merkel  confidences and  we have seen it turn from a low of below the 1.05 level to finish the Fridays session above the1.0610 level. On the open of the Australia equity market on Monday we are seeing levels of 1.0610.

Gold has held its ground over the last week and ranged traded between levels of 1,528 to 1,554. Silver has been tracking Gold and closed the week down 0.5%. Traders will be concentrating on three major points in the markets this week.

1) The outlook for global growth

2) Chinese range of data out this week

3) The handling of Greece debt