Forex - EUR/USD rises on renewed hopes for Greece

Published 02/17/2012, 12:31 PM
Updated 02/17/2012, 12:38 PM
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Investing.com - The euro rose against the dollar on Friday as Greece closed in on securing a EUR130 billion bailout package need to contain the debt crisis.

In U.S. trading on Friday, EUR/USD hit 1.3149, up 0.14%, gaining from a session low of 1.3115 and off from a high of 1.3197.

The pair was likely to test support at 1.3045, Wednesday's low, and resistance at 1.3284, Monday's high.

European leaders may free up bailout funds to Greece in the coming days, even though Greece may miss a debt-to-GDP target.

Greece's debt is expected to fall to 129% of gross domestic product by 2020, above a target of 120%.

Yet Greece says it has done all creditors have requested, and other European leaders are close to helping out.

Furthermore, European governments may slash Greek interest rates and arrange funding from the European Central Bank to keep Athens from defaulting.

Good news in the U.S. jobs market sparked demand for riskier assets, which included the euro.

U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, dropping to 348,000.

U.S. inflation rates rose less than expected as well.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP gaining 0.04% to 0.8313 and EUR/JPY up 0.70% at 104.36.

All eyes will focus on Europe over the weekend and on Monday, as hints that Greece will receive its long-awaited aid package will serve as the euro's main weather vane.




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