Good morning from snowy Hamburg and welcome to our Daily FX Report. After the announcement of an approval of a second Greek rescue package by the European financial leaders followed after the meeting in Brussels yesterday, the focus of the investors remains on Europe today.
However, we wish you a great day and much success in trading today.
Market Review – Fundamental Perspective
In a statement yesterday, European finance ministers confirmed the unification on a second Greek bailout package, although the detailed practical arrangements have to be worked out at present. But this announcement still put positive momentum in the market and the EUR was encouraged to a twelve-week high against the JPY, the fourth gaining day in a row. Also versus the USD, the EUR climbed and was able to recover some further losses. Therefore, the USD lost 0.3 percent against the EUR and was at 1.3281 USD, the lowest since the 9th of February. In comparison, the EUR advanced 0.5 percent to 105.97 versus the JPY from 0.4 percent the day before when it reached 105.84 JPY. Meanwhile, the USD/JPY currency pair traded almost unchanged at 79.65 JPY.
In response to the news and to the Reserve Bank's statement concerning an easing of the monetary policy with targeting a weakening of the AUD, the Australian currency realized losses and dropped 0.3 percent to 1.0728 against the USD after gaining 0.5 percent yesterday. Also versus the JPY, the AUD tumbled and decreased 0.2 percent to 85.45 from the day before when it has touched the highest price at 86.36 since the 11th of July. According to the assessment of the Reserve Bank of Australia, the current financial situation in Europe remains uncertain and this fostered the decision of the RBA to keep its key interest unchanged at 4.25 percent.