EUR/USD: Greek Progress and Fed Minutes Strengthen the Euro

Article by AlgosysFx Forex Trading Solutions

The Euro gained versus the US dollar in the previous European trading exchanges after the release of the minutes of the Federal Reserve policy makers’ meeting earlier this month. Also, optimism that the European Central Bank (ECB) would take action to curb rising Italian and Spanish yields remained, causing the incline of the single currency
versus the Greenback. In today’s European trades, the shared currency is anticipated to sustain gains against the Buck on signs of further monetary easing by the Fed, and still persisting Euro Zone optimism.

Minutes from the latest meeting of the Fed revealed policy makers’ desire to add more stimulus-measures to support the US economy. “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming accommodation pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” as stated in the records of the Federal Open Market Committee’s meeting.

As regards encouraging news in the Euro Zone, Eurogroup Head Jean-Claude Juncker met with Greek Prime Minster Antonis Samaras and expressed backing of the Greek government in its journey to get the economy back on track, while at the same time issuing a friendly warning to the indebted country of its “last chance” to stay in the Euro area. After his meeting with the Greek prime minister, Juncker praised the efforts of the government to implement measures to reduce the nation’s deficit and direct the economy towards the path of recovery.

With such fruitful developments, the Euro is expected to rise versus the Dollar, making a buy position viable in today’s European exchanges.

 

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