Forex Market Review – Euro retreats as focus turns to EU Summit

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Euro trimmed some gains in the Asian trading session after climbing five days against the dollar. EURUSD retreated from a six-week high of 1.3232 after the strong rally last week prompted profit taking. EURUSD opened in Asia at 1.3226 and edged down to 1.3169.

 

Investors are being cautious until  the outcome of the Greek debt negotiations which appear to be close to reaching a bond swap agreement with private creditors. Meanwhile market focus also turns to the EU Economic Summit in Brussels today where the eurozone debt crisis will be discussed.

 

The Australian dollar drifted lower on Monday, partly on profit-taking following last week’s rally but also due to Fitch Ratings agency putting major Australian banks on negative rating watch. AUDUSD opened in Asia at 1.0637 and drifted lower to1.0568.

 

The Japanese yen gained back losses against the dollar and euro due to the damper risk appetite. EURJPY fell from 101.44 to 100.98 and USDJPY edged down to 76.64 from 76.78.