Euro Gains as Euro Area Finance Chiefs Meet


Euro Gains as Euro Area Finance Chiefs MeetThe euro rose strongly on Monday as euro area finance ministers kicked off their meeting today, with investors keenly hoping the gathering will find a solution to the Greece’s financial impasse and find a way to retain it in the monetary union.

With U.S. financial markets already closed for a public holiday, most investors traded in the New Zealand dollar, causing it to edge up 1 percent higher on a favorable retail sales report. The euro has grown stronger, albeit slowly, as the new authorities in Athens and the country’s European creditors and the International Monetary Fund tried to find a way to reach a debt settlement.

The euro advanced 0.2 percent versus the dollar to $1.1413 and remained flat versus the yen and 0.4 percent stronger than the U.K. sterling. The U.S. dollar fell 0.2 percent to trade at 118.475 yen, compared with 118.70 at the close of the markets last week and a four-week peak of 120.48 attained last Wednesday.

The strengthening euro, along with stability in debt markets in Portugal, Italy and Spain possibly indicates that euro area chiefs may not risk much by allowing Greece to exit the euro than they would have if they had allowed it to do so during the last deadlock in 2012. Analysts believe that the markets are stable because euro area ministers believe they have a mutually-beneficial solution.

“This can quickly turn sour for the euro if there is no deal today,” Susanne Galler, a London-based strategist at Jefferies, told Reuters.”The market consensus is for them to do a deal by the end of this week. But we think that if there’s no deal today and the clock starts ticking, then the euro will look increasingly vulnerable.” To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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