Greece and eurozone debt issues in general remain a dominant market factor. The euro made good gains last week as fears of a Greek default eased. It extended these gains over the weekend, to a one month high to the dollar, after EU finance ministers approved the next instalment of Greece’s bailout funds. The euro, though, is off its highs this morning with S&P warning that a debt rollover plan for Greece may put the country into selective default.The euro has also been supported by expectations that the ECB will …

The euro has edged cautiously higher versus the dollar over recent trading sessions, but met with resistance around the $1.4330 level as markets wait to see if the Greek parliament will approve austerity measures that are necessary for the country’s next round of funding from the EU/IMF. The country is to be hit by a 42 hour general strike today and tomorrow, also leaving investors cautious. It was originally thought that the vote would be today but it may not take place until tomorrow or Thursday at this stage. As …

After sharp falls yesterday (as traders bought up the dollar following the tone of the Fed’s Wednesday evening press conference and on the back of some disappointing eurozone data) the euro found some support late in the day and overnight on the news that Greece had reached agreement with the EU and IMF on the details of an austerity plan that should bring it closer to securing its next round of funding. The deal includes deep spending cuts and more tax hikes but must still be passed by the Greek …

Markets will remain firmly focused on events in Europe following yesterday’s confidence vote in Greece. The government won the vote, opening the door to a modest bounce in the euro, with the USD/EUR rate trading around the $1.44 level. However, the government now faces the arduous task of trying to pass an austerity plan (a five year, €28 billion package of tax increases and spending cuts, as well as plans for asset sales) that will secure further funding from the EU/IMF. Thus, upside in the euro could be limited for …

Given market hopes that euro zone officials will reach a deal in time to help Greece avoid a debt default, the euro exchange rate has recovered from lows of close to $1.43 seen versus the dollar yesterday. At the same time however, sentiment remains fragile given the hurdles that still have to be crossed before next week’s EU Summit. Lifetime lows versus the CHF were also seen yesterday as investors moved into the safe haven currency, with the EUR also slipping back versus the GBP. Sentiment was not helped by …

The euro fell towards $1.43 over the weekend dragged down by ongoing concerns about the fate of Greece. It has since recovered some ground on a bout of short covering but downside risks remain. As key meeting dates approach (the Summit of EU heads takes place on 24th June) markets will be watching for any updates on the terms of a second bailout package for Greece. In this regard, the parties involved seem to be as far apart as ever with Germany remaining of the view that it wants to …

At its monthly press conference yesterday the ECB indicated that eurozone interest rates will rise at the next policy meeting in early July. As such a move has already been priced in by markets; the confirmation from Trichet had little impact on the euro. Indeed, the currency actually fell back over the course of the press conference as Trichet offered little insight in terms of further rate hikes beyond July. If anything, a slightly softer outlook for growth and unchanged inflation forecasts saw markets pull back in terms of their …