The Euro was pushed close to a 3-week high against its main rival, the US Dollar, as investors pinned their hopes that Greece was on the verge of securing new funds to avoid default. Yesterday, Greece’s Prime Minister shifted the leadership among the team members working with the IMF and the Eurozone’s lenders; analysts say that giving less credence to the Finance Minister in particular was a positive move given that that particular Minister had clashed time and again with other officials often causing delays and frustration. A “conventional negotiator,” it is believed, will be able to cut through some of the red tape inherent in these types of deals.
As reported at 8:00 am (BDT) in London, the EUR/USD was trading at a session high of $1.0927 before edging back to $1.0877; the pair has been closing in on the high end of its trading range of between $1.0457 and $1.1062, moving away from last month’s 12-year low. The USD/JPY was flat at 119.095 Yen, falling from an overnight high of 119.44 Yen which was a reaction to the downgrade of Japan’s sovereign debt rating by Fitch, however the downgrade had been expected and markets had already essentially priced in that eventuality.
Dollar Drifts as Investors Look to Data
Trade in the US Dollar has been generally tepid as investors await key US data which is due out later today including readings on consumer confidence and housing. Also today, the US Federal Reserve opens its policy meeting which will conclude tomorrow. In gauging the timing of a rate hike, markets will wait to see whether or not the Fed dismisses recent weak data as transient.