Euro traded around its six-week high against the US dollar as investors awaited confirmation that Greece has secured a long-awaited debt deal that will help it avert a messy default. Two sources close to the Greek talks confirmed that a deal was largely in place, though a final agreement could only be clinched when euro zone finance ministers signed off on it. EU leaders will meet at a summit later tonight where they will sign off a permanent rescue fund for the euro zone and are expected to agree on a balanced budget rule in national legislation. Markets shrugged off Fitch's downgrade of Spain, Italy, Belgium, Cyprus and Slovenia last week.

Australian and New Zealand dollars held near multi-month highs as risk sentiment remained well supported on growing optimism over Greek's debt deal. AUD was up four percent this year and NZD up 5.8 percent. The Reserve Bank of Australia will meet on Feb 7 and is expected to cut its interest rates by 25 basis points.

US dollar continued its downward fall against the Singapore dollar and looked set to stay under pressure as risk appetite remained elevated.

Commodity Markets:
Gold 1,734.94 /oz
Brent Spot 111.26 /barrel