Greece & Germany Euro Boost Optimism. The euro soared to a 3-week highs versus the U.S. dollar on Friday, amid optimism the international creditors will soon agree on the next tranche of aid disbursement to Greece. Rebound index of German business sentiment also helped support the euro appreciation. But the gloomy outlook for the euro zone and the potential for further policy easing from the European Central Bank looks still limit the strengthening of the single currency.
"Without prejudice to the opportunity to reach agreement on Greek aid, some other news show if technical constraints and laws of leftovers. Was indicated if the potential for failure is looming," said Nick Bennenbroek, head of currency strategy at Wells Fargo in New York.
Optimistic Euro Liquid Will Help Greece
The euro jumped to a 3-week highs versus the U.S. dollar on Thursday, amid expectations that international creditors will soon agree on the next tranche of aid for Greece. The single currency was also helped by data showing euro zone manufacturing activity was not as bad as expected in November, easing concerns about a deeper recession. But the recovery looks fragile as the Euro is still gloomy economic outlook in the coming months, keeping the possibility of interest rate cuts by the European Central Bank.
"The lack of bad news on Thursday has helped Euro moved higher, after being depressed by the failure of international creditors to agree on aid for Greece earlier this week," said Saeed Amen, forex analyst at Nomura. Yields on Greek and Spanish bonds moved lower also helped shore up market sentiment, according to traders has prompted a number of purchases by U.S. investors.
Take advantage of Momentum, Aussie Print Weekly Increase
"Without prejudice to the opportunity to reach agreement on Greek aid, some other news show if technical constraints and laws of leftovers. Was indicated if the potential for failure is looming," said Nick Bennenbroek, head of currency strategy at Wells Fargo in New York.
Optimistic Euro Liquid Will Help Greece
The euro jumped to a 3-week highs versus the U.S. dollar on Thursday, amid expectations that international creditors will soon agree on the next tranche of aid for Greece. The single currency was also helped by data showing euro zone manufacturing activity was not as bad as expected in November, easing concerns about a deeper recession. But the recovery looks fragile as the Euro is still gloomy economic outlook in the coming months, keeping the possibility of interest rate cuts by the European Central Bank.
"The lack of bad news on Thursday has helped Euro moved higher, after being depressed by the failure of international creditors to agree on aid for Greece earlier this week," said Saeed Amen, forex analyst at Nomura. Yields on Greek and Spanish bonds moved lower also helped shore up market sentiment, according to traders has prompted a number of purchases by U.S. investors.
Take advantage of Momentum, Aussie Print Weekly Increase
The Australian dollar posted a weekly gain against the U.S. currency following a rally in global stocks, which boosted demand for riskier assets. Yield on Australian 10-year bonds also rose to its highest level in almost a month amid speculation that European finance ministers would immediately disburse aid package for Greece. The improvement in China's manufacturing sector activity, Australia's biggest trading partner, has also been the country's export prospects shiny kangaroo.
"The Rise of the $ 1.03 area have built some momentum, which could potentially push the Aussie back to the $ 1.05 area," said Jim Vrondas, a manager at OzForex Ltd.. in Sydney.
"The Rise of the $ 1.03 area have built some momentum, which could potentially push the Aussie back to the $ 1.05 area," said Jim Vrondas, a manager at OzForex Ltd.. in Sydney.
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