By TraderVox.com
As investors wait for the Troika meeting and the ECB decision, some analysts have already indicated that there will be no deal today. The comments from some of the leaders from the Greece meeting have indicated that they might need some more time to discuss some issues on the agreement. These comments have resulted favorably to the dollar with many investors preferring haven assets. Earlier speculations of a deal had forced the dollar to a two months low against the euro.
The dollar continued with its bullish trend against 14 of its major peers. This trend has been precipitated by the declining Asia equities which has boosted demand for the US dollar. This trend is expected to continue if no more good news coming from the Troika and Greece meeting.
With a 0.2 percent increase against the euro at 12:26 p.m., the euro was exchanging at $1.3237 down from $1.3313 that was reached since December 12. The dollar also gained against the Japanese currency by 0.2 percent to exchange at 77.19 yen per dollar. These levels are expected to change as the region’s finance ministers convene a meeting at 6 p.m. in Brussels.
The European Central Bank is expected to benchmark its interest rate at 1%. The meeting which is expected later today and the announcement by the banks president later today is expected to make some changes on its interest rate. Majority of the analysts are projecting the rate to be at 1% while others are projecting a cut to 0.75%. The last ECB announcement in Jan 12 saw the euro rise to .8 and .7 percent against the dollar and the yen respectively.
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