European currency manages gains against its American Counterpart
The Euro climbed against the yen and the dollar for a second day as expectations increased that Greece will receive financial assistance, boosting demand for higher-yielding assets. Following yesterday’s meeting between French President Nicolas Sarkozy and Greek Prime Minister, George Papandreou, Sarkozy announced that “If it were necessary, the states of the euro zone would fulfill their commitments.” Throughout his speech he continually re-iterated that there can be no doubt in this regard and that “While Greece doesn’t need assistance right now, he stated that “we have measures, we are ready, we are determined”. The 16-nation single currency appreciated against 11 of its 16 major counterparts, as Sarkozy’s comments are among some of the strongest by an EU leader to signal that the bloc would bail out Greece, in a desperate attempt to try to warn investors off making further bets against the euro and Greek bonds.Tomorrow (March 9th), the Greek Prime Minister, George Papandreou will meet U.S. President Barack Obama in Washington.
This morning the single European currency managed to regain all of last week’s heavy losses against its American counterpart. The EUR/USD rose as high as $1.36958 this morning, up 1.23% from last week’s close. The yen dropped as Asian shares extended a global stock rally, curbing demand for Japan’s currency as a refuge. The Yen fell 0.74% against the Euro in the forex online market as the EUR/JPY jumped to 123.891 this morning, following last week’s closing price of 122.993.
Last Friday, following news that the Greek parliament had passed its austerity package, the Euro rose high as $1.3613 against the U.S Dollar. Following her meeting with the Greek Prime Minister in Berlin last Friday, German Chancellor Angela Merkel announced that Greece hadn’t requested financial support to deal with its debt crisis. The German chancellor stated that she is optimistic that Greece will not need aid from other Euro-Zone members. However, despite her hopeful comments, the Euro still headed for a weekly loss against the U.S Dollar. The pair closed at $1.35291, down 0.36% from the day’s opening price and down 0.658% from the week’s open – making last week the currency’s sixth weekly loss in the past seven weeks.
This morning the (1100GMT), Germany will release its monthly Industrial Production for January – a leading economic indicator that reflects the change in the total inflation-adjusted value of output produced by manufacturers, mines and utilities. In December, Europe’s largest economy saw an unexpected drop of 2.6%. Analysts predict that Germany will see a renewed rise of 1.1% in its industrial production for January.
Categories: Forex Market, Forex News
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March 9th, 2010 at 11:07 am
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