Euro-zone news forecasted to influence USD today
- Last Updated on 20 February 2012
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The US dollar closed out last week on a mixed note, as it was able to maintain gains against the Japanese yen while taking losses against the euro. A positive US Unemployment Claims figure on Thursday helped contribute to investor optimism in the US economic recovery, and resulted in the USD/JPY closing Friday's session at 79.55. That being said, expectations that Greece will receive its long sought after bailout package when euro-zone finance ministers meet today resulted in some risk taking during Friday's session. The news helped lift the EUR/USD above its recent three-week low, and the pair was able to close out the week at 1.3143.
Turning to today, a bank holiday in the US means that dollar levels will likely be decided by European news. Traders will want to pay particular attention to the results of the euro-zone finance ministers meeting. If the meeting results in Greece receiving its bailout package, risk taking may occur in the markets, which could result in the safe-haven greenback taking losses against some of its main currency rivals. That being said, even if Greece does receive its bailout, it is still uncertain whether the country will be able to avoid defaulting on its debt. Any signs that the Greek crisis will continue could result in investors reverting their funds back to more secure currencies, like the USD.