Session Recap: Euro weakens as ECB rejects Greek bonds

FXStreet (Córdoba) - It was a rather quiet session in America, with the latest string of US indicators having no effect on the dollar as investors remain sidelined ahead of the nonfarm payrolls and keep Greek debt negotiations on check.

The ECB triggered euro weakness by the end of the day after it announced it is lifting the waiver on using Greek government debt as collateral. That means Greek debt will cease to be eligible as collateral in Eurosystem monetary policy operations as of Feb 11. EUR/USD fell to the 1.1350 area on the news, after spending most of the day above 1.1400.

Elsewhere, the dollar traded mixed across the board. GBP/USD managed to hold onto gains, although it backed away from highs in the 1.5250 to end below 1.5200. USD/JPY dropped back to the lower 117’s, while USD/CHF was little changed around 0.9250.

AUD and NZD surrendered early gains to trade nearly flat, while the CAD was among the worst performers, weighed by oil prices fall after 4 days of relief.

Meanwhile, US stocks closed broadly lower as ECB news halted a late rebound. DJIA was down 0.1%, S&P500 fell 0.42% and the Nasdaq dropped 0.23%.

Main Headlines in America:

US: ADP Employment Change (Jan) at 213K

Non-manufacturing ISM gains again in January

EUR/USD falls after ECB announcement on Greece

ECB lifts waiver on Greek bonds as collateral

ECB announcement knocks down the Euro across the board

Wall Street lost gains and closed negative as ECB said NEIN