EURUSD surprisingly edged slightly below the 1.33 levels during early Asian trades on Friday, February 10, 2012, despite Greece's politicians agreeing on the austerity bill put forth by the Troika of EU/IMF/ECB on Thursday. The pair had breached 1.33 resistances for the first time in 2012 yesterday, rising to a high of 1.3321 supported by optimism that Greece is likely to avoid a default next month. The Euro performed well overnight as finally Greek leaders reached agreement with the Trioka on austerity which should grant them access to the 130 Billion Euro rescue fund. European finance ministers however gave Athens less than a week to pass new austerity measures and cuts if they are to grant the debt-stricken country a fresh 130 billion euro payout. The single common currency continues to remain in a tight range so far, currently hovering at 1.3264 versus the greenback.
Meanwhile, ECB left its benchmark Refi rate unchanged at 1.00% yesterday, in line with what the markets had hoped for. On the health of EU economy, bank president Mario Draghi said that “the Euro zone remains prone to high uncertainty and downside risks”.
Powered by Commodity Insights