Today is a slow news day after a data packed previous week. Today the main issue is about the Greek debt situation. The European problems have been weighing in the currency markets for the last couple of days. That has caused the dollar to rally and is probably one of the main reasons why the commodity sell off got triggered last week. There were rumors on Friday that Greece might leave the Euro by the weekend.
One of the issues facing the distressed Euro zone countries like Greece is that since they don’t have their own currency they are unable to increase their competitive advantage through currency devaluation. So they sort of get into an economic trap of fiscal austerity and deflation. Getting out of a currency union though can be very challenging, The Economist has a very good article on this subject.