By TraderVox.com
Tradervox.com (Dublin) – Euro rose to a two-month high after the Greeks Prime Minister announcement of the approval of the austerity measure required for the second financial bailout. The region currency rose against the Great Britain Pound and the yen as a result of this announcement. The approval which had been stalled due to differences in the spending cuts proposal turns the focus to the Finance Ministers meeting on Feb. 15th. Investors as well as analysts will put a close eye on the meeting as it is expected to decide whether to release the international rescue.
The Australian dollar showed some strength against the dollar before a report showing that the retail sales increased last month. This has boosted demand for higher-yielding assets. Many analysts however are very pessimistic about the recent gains by the euro and they are saying that this is short lived as the crisis in Europe is far from being resolved despite the positive news from Greece.
The euro rose to $1.3268 at 10:45 am representing a gain of 0.5% which is a two-month high. This is after it had fallen from its highest since Dec. 12 of 1.3322 on Feb. 9. Against the yen, Euro advanced 103.02 which represent an increment of 0.6 percent. It rose 0.4 percent against the GBP to settle at 83.92 British pence. So far, euro has gained 2.3 percent against the dollar which remained unchanged against the yen.
With Greek lawmakers agreeing on the austerity measures, all eyes are now focusing on the Brussels where decision to give Greece a second bailout of 14.5 billion euro will be made. According to Valentin Marinov, a senior currency strategist at Citigroup Inc., analysts and investors are cautious about the prospects of the euro amidst the debt crisis. However, according to some surveys, the euro has gained against major world currencies over the past week and if the crisis in Greece is resolved amicably, the 17-nation currency will be stronger than most of its peers.
Article provided TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
