Forex News – Greek conservative leader hopeful government can be formed; euro rises

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The euro rose to a session high against the dollar, in early European trading,  hitting 1.2950 in reaction to some  positive reports from Greece. The Greek conservative party leader Antonis Samaras said there are still hopes to form a coalition government.

Samaras was quoted as saying that the democratic left party’s proposal for a national unity government is close to the conservative party’s position. This gives some hope that another round of elections can be avoided, following Sunday’s inconclusive elections to form a majority government.

“We are fighting to form a government and there are still hopes this can done,” Samaras told his parliamentary group, adding that he welcomed the proposal of a small, moderate leftist party for a national unity government.

Earlier, he met Socialist leader Evangelos Venizelos, who has been given a three-day mandate to try to form a government.

EURUSD opened the European session at 1.2923 and briefly dipped to a 1.2904 before steadily rising to 1.2950.

Other risk currencies also rose, particularly the Australian dollar, hitting a high of 1.0056. Earlier in the Asian session, the aussie fell to a five-month low of 1.0017 after disappointing economic data from China, Australia’s major trading partner.