Previous session overview

The dollar edged higher in Asian trading Wednesday, but mostly stuck to recent ranges, as investors waited a Thursday meeting at which European Union leaders are to discuss the economic outlook, including assistance to Greece and other heavily indebted southern European countries.

A scheduled meeting of European Union leaders Thursday to discuss plans to help fiscally strapped Greece and other euro-zone members may also support the unit for the rest of the week, they added.

The less pessimistic outlook for the euro came after German Finance Ministry Spokesman Michael Offer said overnight that Thursday's meeting would focus on further measures to help Greece improve its tattered finances.

In Tokyo trade Wednesday, however, non-Japanese investment banks' proprietary trading desks and hedge funds took advantage of the euro's rise both overnight and early morning in order to lock in profits, dealers said.

Together with some selling by Japanese exporters on a regular settlement day, it o weighed the euro down to JPY123.40 from JPY123.52.

The British pound gave up its gains against the US dollar during the start of the New York session as weak Trade Balance data was released. Total Trade Balance widens to -7.3 billion versus -6.6 billion as forecasted.

The Australian dollar was sharply higher in Asian trading Wednesday; bolstered by reports the European Union will step up efforts to avert a sovereign debt default in Greece.

Market expectation

EURUSD now picking up reports of supply seen from the supra national, the same name a noted buyer off the dip lows to USD1.3750. Rate currently trades around USD1.3757, off recent recovery highs at USD1.3765.

Pound moves above USD1.5700, with sterling seen in demand as we approach release of UK industrial/manufacturing data on the half hour. Resistance has been noted between USD1.5705/15 ahead of USD1.5725/30. Stronger resistance seen placed toward USD1.5750 (USD1.5749 Tuesday high). Support seen placed back at USD1.5650 ahead of USD1.5635/30.

EURGBP slowly grinding its way lower, but begins to challenge support placed between stg0.8765/55. A break below here may open a deeper move toward stg0.8735/30.

European stocks are expected to open higher Wednesday, taking their cue from a strong session on Wall Street prompted by hopes that Germany will step in to resolve Greece's debt crisis.

If the shares pick up and the European Union meeting Thursday delivers some positive news, the common currency may rise to JPY125.00 and USD1.3900 by the end of the week, said analysts.

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.

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