FX & CFD trading involves significant risk
The euro hovered near a one-month high against the dollar on Monday, boosted by progress over Greek debt financing and a potential widening of interest rate differentials ahead of central bancs' meetings this week.
The euro has jumped almost 4% in the past three weeks as Greece has inched closer to stave off the threat of a default by getting additional financial aid.
The EU and IMF have made clear a new bailout package, following a 110 billion euro deal agreed only a year ago, depends on Athens keeping to its promises for further austerity and accelerated privatisations.
According to a German news magazine Der Spiegel, a new package might cost more than 100 billion euros ($144 billion).
Also the euro is seen rising ahead of the European Central Bank's policy meeting on Thursday, when the bank is expected to prepare markets for an interest rate hike in July.
Such an outcome would widen rate differentials in the euro zone's favour.
"We believe that the ECB is set to signal on Thursday that the next rate hike will be in July and this positive interest rate dynamic will continue to help the euro," said Elsa Lignos, currency strategist at RBC Capital Markets.
By contrast, the dollar was stuck near a fresh one-month low hit against a basket of currencies.
The dollar index dipped as low as 73.643 after the closely-watched non-farm payrolls report last Friday showed a sharp slowdown in job creation, pushing the unemployment rate up to 9.1% from 9.0%.
|remaining time till the new event being published|
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.