Forex: Wednesday's review
The euro rose against the majority of its most-traded counterparts as optimism increased that area leaders will work to avoid a default in Greece and contain the region’s debt crisis.
The 17-nation currency strengthened before a conference call today among the leaders of Greece, Germany and France.
The euro briefly dropped after Austria’s parliamentary finance committee delayed a vote to approve the increase of the European Financial Stability Facility.
The yen approached a post-World War II record against the dollar after U.S. retail sales unexpectedly stagnated in August, increasing concern the nation’s economic recovery is faltering.
U.S. retail sales were unchanged in August, following a 0.3 percent gain for July that was smaller than previously estimated, Commerce Department figures showed today in Washington. The median forecast of economists was a 0.2 percent rise.
EUR/USD: the pair showed low at $1.3635 but restored later and finished session in area of Tuesday high $1.3740.
GBP/USD: in first half of day the pair updated low and reached $1.5705. Later restored and finished session in area of $1.5760.
USD/JPY: the pair was under pressure and updated weekly low.
EMU data at 0900GMT should see final August HICP data remain unrevised, while Q2 employment data is due at the same time. Then later, at 1840GMT, ECB President Jean-Claude Trichet is due to host a gala dinner of the Eurofi Financial Forum 2011.