Euro Rises As Greece Reaches Bailout Deal
August 11 2015 - 4:38AM
RTTF2
The euro recovered from early its early losses against the other
major currencies in the early European session on Tuesday, after
Greece finance ministry said that the Hellinic nation has reached a
deal with its creditors over the terms of a third bailout.
After marathon talks, Greece and its creditors talks have
reached an agreement on third bailout. Greece agreed to measures on
function of privatisation fund and administration of bank non
performing loans, as per the terms of rescue package worth around
EUR 86 billion. The agreement has to be passed by parliament this
week.
It would help Athens to repay debt to the European Central Bank,
due on August 20.
However, the Greek finance ministry official Euclid Tsakalotos
said that two or three small details are to be agreed.
In the Asian trading, the euro fell against its major rivals,
following China devaluing its currency against the greenback by a
record amount.
The People's Bank of China surprised the market by reducing the
value of yuan at 6.2298 a dollar, 1.9 percent lower than Monday's
official fixing rate.
In the early European trading now, the single currency climbed
to nearly a 1-month high of 137.74 against the yen, reversing from
an early low of 136.78. The euro may test resistance near the
138.50 region.
The euro edged up to 1.1041 against the greenback and 0.7074
against the pound, coming off from its early low of 1.0959 and a
2-day low of 0.7039, respectively. The euro is likely to find
resistance around 1.12 against the greenback and 0.715 against the
pound.
Against the Swiss franc, the euro advanced to nearly a 7-month
high of 1.0844 from an early low of 1.0772. On the upside, 1.20 is
seen as the next resistance level for the euro.
The euro climbed to a 1-week high of 1.5025 against the
Australian dollar and nearly a 2-week high of 1.6799 against the NZ
dollar, from early lows of 1.4829 and 1.6631, respectively. If the
euro extends its uptrend, it is likely to find resistance around
1.53 against the aussie and 1.69 against the kiwi.
Against the Canadian dollar, the euro recovered slightly to
1.4371 from an early 4-day low of 1.4310. This may be compared to
an early high of 1.4379. The next possible upside target level for
the euro is seen around the 1.45 area.
Meanwhile, the news of Greece deal reduced the demand for the
safe-haven currency, the yen.
The yen fell to more than a 2-month low of 125.07 against the
U.S. dollar, from an early high of 124.5. The yen may test support
near the 126.00 area.
Against the pound and the Swiss franc, the yen dropped to 5-day
lows of 194.69 and 127.37 from early highs of 193.99 and 126.57,
respectively. If the yen extends its downtrend, it is likely to
find support around 139.00 against the euro, 195.00 against the
pound and 128.00 against the franc.
Looking ahead, the German ZEW economic sentiment for August is
also slated for release at 5:00 am ET.
In the New York session, U.S. wholesale inventories data for
June, U.S. preliminary second quarter productivity and costs data
and Canada housing starts for July are set to be published.
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