US dollar weakens against major currencies as Greece's sovereign concerns eased temporarily. Japanese yen also drops amid speculations over intervention against currency appreciation. 'Risky' currencies including the euro, Australian dollar strengthen across the board, triggering rises in commodities.

WTI crude oil price extends gains above 80 to 82.76 while heating oil and gasoline staying at 2-month highs. Inline with EIA and OPEC, the International Energy Agency revised up its global oil demand forecasts to 86.6M bpd (+1.8% y/y), compared with86.5M bpd in February's projections.

The OPEC is scheduled to meet on March 17 but both the IEA and consensus expect no change to production quotas. At the end of 2008, the organization controlling the world's 40% oil export decided to reduce production to 24.845M bpd in order to rescue oil price. Compliance was at a promising 80% in early 2009 but then fell to 53% last month. The OPEC will again reinforce the importance of adhering to quotas but few member countries are expected to follow in practice.

Gold price soars to 1119 in European morning as USD is pressured. In the near-term, the metal will likely trade within a range of 1088.5 and 1145.8. Sluggish ETF investment and lack of news from central bank buying are limiting gold's upside.

USD falls to a 3-week low against the euro as European leaders 'assured' the Greece's financial deficit problem is contained. Despite protests and strikes in streets after Prime Minister George Papandreou presented a third austerity plan to reduce deficits, leaders from other European countries seem to be confident that Greece will overcome the problem. Former European Commission President Romano Prodi said Greece's financial problems are 'over'. At the same time, ECB president Trichet said the central bank may present plans about being the lender of last resort to deal with financial crises in Europe in June.

Another reason pushing the euro higher is the strong growth in industrial activities. The Eurozone's industrial production expanded +1.7% m/m in January while December's reading was also revised up to a gain of +0.6% from a fall of -1.7%. This is the strongest monthly increase since 1990 and revived hopes that the 16-nation region's economy is gaining momentum again.

Japanese yen also declines against major currencies except for USD on intervention speculations. Japanese Finance Minister said he's aware of the option of currency intervention if the markets move too abruptly. At the same time, the market anticipates the BOJ to announce further stimulus policies when policymakers meet next week. The possibility of 're-entering' QE by the BOJ while other major central banks are considering 'exiting' is negative for Japanese yen.