24-Jan (USAGOLD) — Gold is in retreat as renewed concerns about Greece temper risk appetite. The euro has retreated, bolstering the dollar in the process. EUR-USD has fallen back below 1.3000.

The Eurogroup has rejected the latest Greek debt swap deal, arguing that the coupon is too high. Basically, policymakers in Europe want private bondholders to “voluntarily” accept a 68% haircut and a coupon on their new bonds somewhere around half of the current market rate (which itself is probably reflective of mispriced risk). Meanwhile, S&P has said that they will likely downgrade Greece to “selective default” once these ridiculous negotiations are concluded.

The dollar is also getting an assist from yen weakness after the BoJ came out with a weaker view of the Japanese economy. The BoJ says the eurozone crisis is having a negative impact on Japan’s recovery and will likely lead to contraction this fiscal year.

The Fed is expected to further refine their communications at the end of a 2-day FOMC meeting that begins today.

Silver is consolidating recent strong gains; trading within Monday’s range.

• Canada retail sales +0.3% in Nov, above market expectations of +0.2%, ex-autos +0.3%.
• Eurozone Markit PMI – Composite rose to 50.4 in Jan, above market expectations of 48.6, vs 48.3 in Dec; Manuf 48.7, Services 50.5.
• Eurozone Industrial Orders -1.3% m/m in Nov, above market expectations of -2.0%, vs negative revised 1.5% in Oct; -2.7% y/y.
• BoJ holds overnight call rate steady at 0%-0.1%; Asset purchase target steady at ¥20 trillion.
• RBI holds repo rate steady at 8.5%.