Forex Market Review – Euro rises on reports that Greek debt agreement is close

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Euro turned positive against the dollar towards the end of the European trading session after comments from a Greek official that a draft agreement was being finalized on a loan deal with international creditors. This agreement will be put before political leaders for approval later in the day.

The Greek official’s statement suggested that the Greek government has completed negotiations with the troika (European Commission, ECB, IMF) lenders on the 130 billion-euro rescue package, although agreeing to the tough austerity measures that come with the bailout could be a challenge.

EURUSD rose from a session low of 1.3094 to hit a high of 1.3180 by the end of European trading.

The Australian dollar gained across the board today following the Reserve Bank of Australia’s decision to maintain the key benchmark interest rate at 4.25 percent despite expectations for a 25 basis point cut.

AUDUSD consolidated gains when it surged from 1.0700 after the rate announcement in the Asian session to as high as 1.0821 in early Europe trading. AUDJPY climbed from 82.10 to 82.96.

The euro which had touched a record low against the Australian dollar at 1.2134, bounced up to 1.2208 after being boosted by reports of the Greek debt agreement being close.

EURCHF broke out of a range and after opening in Europe at 1.2060 the pair rose to a high of 1.2095.


USDJPY which has been trading sideways in a range since Friday, moved up in European trading to test the 38.2 percent fibonacci retracement of the move from the recent peak on January 25 to the recent trough on February 1 but failed to break it at 76.85.