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EUR/USD

The Euro was contained within a relatively narrow range during Monday as opposing forces were able to achieve a more balanced market position. There was Euro support below 1.3580 against the US currency while it failed to push above 1.3650.

The Euro continued to be unsettled by a lack of confidence surrounding the Greek debt situation and uncertainty over the medium-term implications for the Euro-zone economy and the Euro. EU officials denied that there was a bailout for Greece which tended to undermine sentiment to some extent, although the impact was measured given the amount of bad news priced in.

A lack of confidence is still very important in curbing the potential for Euro gains. The ...

EUR/USD

The Euro found support close to 1.3450 against the dollar on Friday and then rebounded firmly during the day. There was evidence of short covering following sharp losses over the previous 24 hours with the Euro also recovering after testing important medium-term support levels.

Following the surprise Federal Reserve discount rate increase the previous day, central bank officials were again keen to emphasise that this was not a change in monetary policy and there were also suggestions that there would be no short-term move to increase the Fed funds rate which curbed any further dollar demand on yield grounds. Underlying confidence in a US recovery is still firm at this stage which is providing background ...

EUR/USD

The Euro was unable to make any fresh move towards the 1.38 level against the dollar on Thursday and dipped weaker during the day as confidence remained fragile ahead of the EU summit on Greece’s debt situation.

The EU stated that it would provide determined and co-ordinated action to support Greece if needed. There were no major details provided at this stage with further details set to be announced next week. The support would be dependent on committed budget action by the Greek government.

There was some disappointment over the lack of detail and also some fears that support would be blocked by the German parliament. In an initial reaction, the Euro fell sharply with a low close to the ...

EUR/USD

The Euro remained prone to volatile trading on Wednesday as market sentiment fluctuated sharply. There was selling pressure above the 1.38 level in European trading and the currency then dipped sharply to lows below 1.37 in New York.

There were renewed doubts whether a credible budget-support package for Greece could be put together and underlying stresses continued to undermine confidence in the Euro. There were also fears that any relief measures for Greece would undermine the medium-term commitment to budget stability and weaken underlying Euro support. Thursday’s EU meeting to discuss the situation will inevitably be watched very closely and failure to agree a package would tend to put the Euro under ...