The dollar weakened against its peers today on thin volume as concern over the election win by Greece’s anti-austerity party Syriza on Sunday continued to diminish and market sentiment deteriorated across the board.

The euro strengthened against the dollar coming off its 12 year plus low set overnight as the market overlooked fears concerning Syriza’s commitment to undo several of the plans for austerity put in place by the International Monetary Fund and the European Union and to revise the terms of Greece’s 240 billion euro bailout. The European Central Bank’s recent announcement of its large scale stimulus program continues to bolster market view. Ifo reported that its German business confidence index jumped to a 6 month high in January registering at 106.7 while experts predicted a reading 106.3.

The pound strengthened against the dollar but still traded within range of its 18 month low as political events in Greece continued to weigh in. The pound was not affected by data released on Friday which revealed that UK retail sales increased by 0.4% in December following forecasts of a 0.6% decrease after sales rose 1.6% in November. The pound was weaker against the euro.

The yen weakened against the dollar with the pair up over half a percent following the release of data which revealed that Japanese exports increased 12.9% in December from the previous year which signaled positive outlook over recovery of the Japanese economy. The Bank of Japan released minutes from its December policy meeting which revealed that its members are not in a rush to increase its stimulus program even though the current decline in oil prices heighten the risk of deflation.

The Australian dollar strengthened while the New Zealand dollar weakened against the US dollar. The Canadian dollar held its ground still trading close to 6 year lows against the dollar.

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