Market News

Investors hoped remain firmly pinned on a resolution today to the Greek bailout issue, which has helped to buoy the Euro and other commodity-linked currencies.

In Asian trading, the U.S. Dollar struck a 3½ month peak against the Japanese Yen as better than expected U.S. data points provided a lift to the greenback, already rallying since the Bank of Japan’s movement earlier this week.

Following a surprise announcement that the E.U. would not make a do-or-die decision on the Greek bailout loan, the Euro tumbled to a 3-week low against the U.S. Dollar on renewed worries that Greece will be unable to meet its March 20th debt obligations.

A planned meeting in Brussels for today which was aimed at approving the Greek bailout plan was delayed again after Eurozone finance ministers claimed that Greek party chiefs failed to commit to the necessary reforms.

The Euro had initially made some gains against the U.S. Dollar during the Monday trading session on news that the Greek parliament had approved additional austerity measures, but recent news that Moody’s credit rating agency had downgraded several Eurozone members put renewed albeit slight pressure on the common currency.

With approval of a new austerity law passed by the Greek Parliament, the Euro edged up against the U.S. Dollar in Asian trading, pushed higher by investor hope that the Greek government will be able to secure the much-needed funding for the second bailout loan.

Following Thursday’s announcement that Greece has finally agreed to the necessary reforms which will allow it to proceed with a second bailout loan, the Euro continues to tenuously cling to recent gains.

After seven difficult hours of negotiations on Thursday, Greek leaders were unable to find a compromise through which they could sign a new bailout and austerity program to save the struggling nation.

The Euro continues to hold close to a 2-month peak with investors hopeful that the Greek government will finally agree to the conditional measures necessary to obtain the second bailout loan which would prevent a disorderly default.

The Euro continues to be pressured by events in Greece as politicians there postpone what is a critical decision on the second bailout offering that will affect the country’s economic future.

The Euro continues to be under pressure in Asian trade as the Greek government considers new terms and conditions to the second bailout loan, even as the deadline for their agreement looms.

In Asian trade, commodity-linked currencies fell on news that China’s non-manufacturing PMI slipped to 52.9 last month from December’s reading of 56.0 .

The Euro moved higher against the U.S. Dollar as risk appetite improved following a run of better than expected global PMI data.

The U.S. Dollar continues to be under significant pressure following last week’s commitment by the Federal Reserve Bank to hold interest rates at their current ultra low level through 2014.

The Euro appears to be approaching a key test level as news that the Greek government is close to clinching a deal with its private bondholders helped to boost the common currency.