The eurozone Finmin meeting to agree on new bailout terms for Greece was still ongoing around the NY close, amid rising optimism a deal would be reached. The rate recovered off US afternoon lows of $1.2795 after Fed Bernanke’s speech which offered no fresh insight or policies to close around $1.2820. Euro remained defensive but held above $1.2800 in light Asian trade as markets awaited a decision from eurozone ministers on Greece. The pair spiked to $1.2837 on initial reports that an agreement was reached, but soon slipped sharply, flushing stops to $1.2736 after headlines from Germany’s Schaeble announced no agreement had been made and that ministers are due to meet again Monday. Short covering put in a floor and euro-dollar lifted off lows to $1.2760 in late trade. Data light in the US today with highlights from Initial Jobless Claims at 1330GMT, followed by Reuters/Michigan Consumer Sentiment Index at 1455GMT.
EasyForexNews Research Team