As the Greek nation prepares to receive further bailout assistance from the special purpose E.U./IMF mission, the common currency held close to a 1-month peak against the U.S. Dollar. Investors are hopeful that the Euro could hit $1.50 within the next month, especially given that the European Central Bank is said to be considering another interest rate hike and is likely to prepare investors for one at Thursday’s policy setting meeting.
As reported at 2:59 p.m. (JST) in Tokyo, the Euro was trading against the greenback at $1.4642, a 0.1% gain from Friday’s late trade in New York; earlier in the session, it had struck a 1-month peak of $1.4659. Analysts expect the next major barrier to be $1.4710, but they see it as easily surmounted given the negative dollar sentiment that has been growing. In the last three weeks, the Euro has regained nearly 4% against the U.S. Dollar as investors pin their hopes on a Greek aid package, estimated to cost as much as €100 billion.
The U.S. Dollar Index remains stuck close to a 1-month low following last Friday’s disappointing labor data which suggests that the Fed’s ultra loose monetary policy is likely to remain as such for an extended period of time.