Previous session overview

The euro came back moderately higher Wednesday after reacting positively to the latest austerity measures in Greece and then relinquishing some of its gains.

The U.S. dollar recovered some strength against the euro after reports the leaders of Germany and Greece won't discuss aid for fiscally troubled Greece at a meeting Friday.

German Chancellor Angela Merkel said she planned to discuss Greece's austerity plans when she meets Greek Prime Minister George Papandreou in Berlin Friday, but a spokesman for Merkel said earlier Wednesday the two leaders would not discuss any aid package for Greece.

News that the Institute for Supply Managements non-manufacturing index for February in the U.S. rose to 53.0 in February from 50.5 in January, exceeding the expected 51.0, had little immediate impact on markets.

The main focus of the session has been the announcement by Greek authorities of a range of austerity measures embracing spending cuts and tax increases, which includes a rise in value-added tax, a cut in salary bonuses and a freeze of state pensions. They are expected to raise EUR4.8 billion.

The pound was also staging a small rally pulling itself back over USD1.50 after falling below that level Monday.

Market expectation

Analysts said the euro is still at risk because there is still no assurance the Greek measures will be fully implemented and because the package will contribute to slower growth in the euro zone as a whole.

EURUSD spikes to near USD1.3700 just ahead of the London fixing event, the pair goosed higher by pre-fixing demand, according to traders. Residual supply noted to USD1.3710 but stops are also mentioned above USD1.3700. Euro last at USD1.3690.

The dollar-yen is continuing to trade in a range without any real conviction. Traders talk of some stops placed either side of the range parameters JPY88.47 - JPY88.99, the market currently JPY88.84.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

Comments

Add New Search

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."