Euro's Pullback Is Shallow

(Reuters) - The euro fell broadly on Monday on investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout with a deadline imminent, keeping alive the risk of a messy default which could rock the currency bloc. Greece's coalition members must tell the European Union by noon on Monday (5 a.m. ET) whether they accept the painful terms of a new bailout worth 130 billion euros, with euro zone ministers postponing a meeting planned for Monday due to the delay in Athens. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns mounting that Athens might be opposed to more austerity measures like labor reforms and wage cuts. "Investors are a bit cautious about the euro ahead of the deadline with a ...

(Reuters) - The euro took something of a hit on Monday as Greek coalition parties dithered on approving the terms for a new bailout with a deadline just hours away. Greece's coalition members must tell the European Union by noon on Monday (1000 GMT) whether they accept the painful terms of a new bailout worth 130 billion euros in order to avoid a disorderly default, with euro zone ministers postponing a meeting planned for Monday due to the delay in Athens. "There are so many hurdles before they reach a deal, with so many sticking points," said Minori Uchida, senior currency analyst at Bank of Tokyo-Mitsubishi UFJ. "The euro will likely test $1.30 again." The single currency shed 0.4 percent in early Asian trade to stand at $1.3105, having fallen as far as $1.3075 in thin early trade. ...

(Reuters) - The dollar rebounded on Monday from last week's sharp decline against the euro, but a strong bearish stance toward the greenback is expected ahead of next month's U.S. debt limit debate. Disparities in global central bank monetary policy will not help the currency. The dollar found support after a U.S. government shutdown was averted on Friday and the currency's rise was widely viewed as overdue after its sell-off versus the euro for the last four months. So far in April, the dollar is still down more than 2 percent. Interest rate differentials between Europe and the United States, however, are expected to continue to support the euro following the European Central Bank's 25-basis-point rate increase last week. The U.S. Federal Reserve is widely expected to keep rates low ...