Euro rebounded from the lowest level since July 2010 after some positive news out of Greece saying opinion polls over the weekend showed Greek voters were more in favour of political parties that were pro-bailout. If the Greek conservative party wins the June 17 elections, this will increase the likelihood of Greece committing to austerity measures required by the EU/IMF bailout out agreement. This will ease concerns that Greece will exit the euro zone.
EURUSD gapped higher in the Asian open at 1.2572 from the Friday close of 1.2514, and moved further off a July 2010 low of 1.2495 hit on Friday. However, the euro remains vulnerable due to lack of growth in Europe and the fragile situation of Spanish banks. The single currency has lost almost 5 percent this month, heading for the biggest monthly decline in eight months.
GBPUSD tracked higher alongside the EURUSD, and opened the Asian session with a gap at 1.5689 versus Friday’s close of 1.5661.
Yen gained against the dollar for the first time since last Thursday after minutes of the Bank of Japan April policy meeting were released showing the Japanese central bank is being less aggressive toward monetary easing, which usually weakens the currency . This dampened speculation the BOJ will boost easing in the next policy meeting. USDJPY fell to a session low of 79.36 from 79.70.
EURJPY opened in Asia with a gap as it did with other major counterparts, as positive news from Greece triggered short-covering. EURJPY opened at 100.20 versus the Friday close of 99.69.
The Australian dollar gained 1 percent from the Friday close and moved further away from a six-month low reached last week. AUDUSD opened in Asia with a gap higher at 0.9812 and rallied to a one week high of 0.9860 during Asian trading.
Looking ahead, there are no major events on the economic calendar today as most markets are closed in Europe and the United States for a public holiday.