Forex - Euro stronger as leaders set to meet on Greece debt bailout

Investing.com - The euro gained in early Asia on Monday as investors look ahead to what appears to be a crucial meeting on Greece's debt talks.

EUR/USD changed hands at 1.1363, up 0.09%, while AUD/USD rose 0.05% to 0.7773. USD/JPY traded at 122.79, up 0.07%.

European leaders are to hold emergency talks in Brussels about Greece’s bailout agreement, which is due to expire on June 30.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week down 0.04% at 94.27.

The euro area is also to release data on private sector growth on Tuesday, while the week will also bring what will be closely watched reports on the U.S. factory and housing sectors.

Also on Monday, markets in China are to remain closed for the Dragon Boat Festival holiday.

The U.S. is to release private sector data on existing home sales.

Last week, the euro dipped against the other main currencies on Friday amid mounting fears over the prospects of a Greek default, but the dollar still ended the week lower against both the single currency and the yen as investors pushed back expectations for higher U.S. interest rates.

The single currency remained under pressure as a deadlock between Athens and its international lenders continued ahead of the approaching deadline for Greece’s repayments to the International Monetary Fund at the end of the month.

A default by Greece could lead to the country’s exit from the euro zone.

Europe wants Greece to make spending cuts in order to secure a deal that will unlock €7.2 billion in bailout funds and prevent Athens defaulting on its debts when its bailout expires at the end of the month.

On Friday the European Central Bank extended extra emergency liquidity to Greek banks as outflows from banks continued.

The greenback still ended the week lower against the other major currencies after the Federal Reserve’s rate statement tempered expectations for a rate hike later this year.

The Fed lowered both its U.S. growth forecast and its interest-rate projections on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.

Fed Chair Janet Yellen said the central bank wanted to see “more decisive evidence” of sustained growth before raising rates, but acknowledged that the economy has “expanded moderately” after a weak first quarter.