A positive Tuesday for the US dollar saw it strengthen against the majority of its peers. This was attributed to euro weakness against the dollar, and positive data releases in the afternoon from the US. Ongoing Greece and Eurozone talks, which seem to be no closer to an agreement, paved the way for the US dollar to strengthen. We saw continued US dollar strength in the afternoon on the back of positive core durable goods orders and consumer confidence.
Against the US dollar, sterling has given back some of its post-election gains and is hovering around the support level of 1.54. It will be interesting to see if the pick-up in US economic data supports further US dollar strength and pushes it through this support level.
With no key data releases due out today, investors will be keeping an eye on the start of the G7 meetings. The focus will be on the current debt situation in Greece, as well as the sanctions against Russia.