Forex Market Review – EURUSD hits 8-week high on progress in Greek debt talks

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The euro gained against most counterparts today after reports that Greek government officials were putting together a detailed final document on debt cutting measures. A statement from a Greek official suggested that negotiations were completed with the international lenders to approve the 130 billion-euro bailout package that is needed to avoid default. This agreement will be now be put before political leaders for approval on Wednesday.

 

The progress in the debt talks boosted market sentiment and pushed the EURUSD up to an eight-week high of 1.3268, the highest since December 12.

 

Against the yen, the euro surged 1.6 percent on the day to 101.97 yen. Meanwhile, USDJPY rose to a one-week high of 76.95, up from 76.50.

 

Sterling rose to a 12-week high against the dollar on Tuesday, tracking broad gains in riskier currencies on optimism that Greece is close to securing a second bailout  and avoiding a messy default.  GBPUSD hit a high of 1.5904, rising 0.7 percent on the day to the highest level since mid-November.

 

The Aussie dollar held much of the gains it made after the Reserve Bank of Australia unexpectedly kept interest rates unchanged. AUDUSD hit a six-month high of 1.0821  in early European trading where it hovered around those levels to trade sideways throughout the day.