The Euro Rose as Expectations of an Agreement on Greece Debt
The Euro rose above the level of 1.30 dollars on Monday local time (Tuesday am PM 24/1), in the middle of the progress reported in talks Greece’s debt and traders are still covering a short run in European currencies. While traders said they did not predict the news that would boost the dollar from a two-day policy Board meeting of the Federal Reserve AS beginning on Tuesday.
At 22: 00 GMT (05.00 PM Tuesday), the euro traded at 1,3027 dollars, compared with 1,2933 dollars at the end of Friday.
The Euro rose to 100,31 yen 99,61 yen, while the dollar was flat at 76.99 yen.
Growing expectations for an agreement on “private sector initiatives” to trim Greece’s debt load after an outline deal on offer on Monday to the EU, that will bridge any deficiencies in finance Greece.
“I am confident that we can conclude negotiations as soon as possible, hopefully in PSI, this week,” Eu Economic Affairs Commissioner Olli Rehn said.
Some traders doubt the fundamental basis of rising euro, but said sentiment in politics can still be sent higher.
“From the perspective of pure fundamentals, I think the euro does not record events that mean before,” said John Kicklighter from DailyFX.
However, he added, “given the depth of the plummeting euro … rebound bigger won’t be too hard to facilitate.” Kicklighter shrink hope every action market harder than the Federal Reserve.
“This special Meeting is an event unique in that they will start generating the estimated interest rates along with their updates on the growth and policy stance,” he said.
But, he said, “the potential for real impact though came from an unknown-speculations and advances on QE3 ‘ hopes of revival ‘ to the euro.” Most analysts said they did not expect the Fed to start a “QE3″ – new bond purchase program aims to further depress interest rates.
22: 00 GMT the dollar was bought on 0,9269 Switzerland francs, down from 0,9340 francs on Friday. United Kingdom Pound slump to 1,5567 dollars from 1,5575 dollars
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Tags: Euro, European Union, Federal Reserve, Federal Reserve System, Greece, Monday, Pound sterling, Switzerland
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