There are still great doubts that the Greek government will live up to its end of the bailout bargain. Despite Greece’s vote in agreement of debt terms, it appears that investors have little faith that the most recent fix will be a permanent one. As such, the Euro came under renewed pressure after the all too brief rise of the relief rally. Expectations that the US Federal Reserve Bank and the European Central Bank are on diverging monetary paths also helped to prop up the US Dollar. The greenback, in fact, rose broadly against its peers as the majority of central banks are in easing, rather than tightening, mode.
As reported at 11:29 am (BDT) in London, the EUR/USD was trading lower at $1.0892, a loss of 0.51%; the pair ranged from $1.0885 to $1.0962. The USD/JPY was higher, trading at 123.9875 Yen, a rise of 0.18% and moving back toward the session high of 124.0700 Yen. The US Dollar Index was trading higher at 97.480 .DXY, a gain of 0.32%.
Kiwi Dollar Hit by Disappointing CPI
In New Zealand, the latest economic news cemented investors’ expectations that the New Zealand Reserve Bank will be compelled to lower interest rates at the next policy meeting. As reported by Statistics New Zealand, the CPI reading for Q2 edged up to 0.3% from 0.1% in the previous reading; expectations were for a rise to 0.4%. The NZD/USD was trading lower at $0.6523, a loss of 1.15% but moving away from the earlier low of $0.6498, a level not seen in nearly 6 years.