Market Is Steadying But

(Reuters) - The euro rose on Monday on expectations that euro zone policymakers would approve Greece's second bailout but risks over implementing the deal as well as a loose euro zone monetary policy outlook were likely to cap the common currency's gains. Analysts expected the 130 billion euro bailout deal to be signed off by euro zone finance ministers on Monday after numerous delays. Although financing gaps in Greece's debt reduction plans remained, a euro zone official said they were not big enough to risk derailing the process. The euro was seen likely to stage a knee-jerk rally on the deal being signed as chances of a disorderly default on Greek debt would be reduced. However, the rally could run out of steam as the package was not expected to resolve Greece's underlying economic ...

(Reuters) - The euro rose on Monday after China's surprise move to ease monetary policy to stimulate growth and on mounting expectations that euro zone policymakers would finally approve Greece's second bailout, averting a messy default. Analysts said gains would be limited until the 130 billion euro bailout deal was signed off by euro zone finance ministers later on Monday, given numerous delays in recent weeks. Although financing gaps in Greece's debt reduction plans remained, a euro zone official said they were not big enough to risk derailing the process. The euro was seen as likely to rally in the immediate wake of a deal being signed, although it could run out of steam near its 2012 high around $1.3322 as the package was not expected to resolve Greece's underlying economic problems. ...

(Reuters) - The euro rose on Monday after China eased monetary policy to stimulate growth and expectations mounted that euro zone policymakers were set to approve Greece's long-awaited second bailout, averting a messy default. Analysts said gains would be limited until the 130 billion euro bailout deal was signed off by euro zone finance ministers later on Monday, given numerous delays in recent weeks. Although financing gaps remained, a euro zone official said they were not so large as to risk derailing the process. The euro was seen as likely to rally in the immediate wake of a deal being signed, although it could run out of steam near the 2012 high around $1.3322 as the package was not expected to resolve Greece's underlying economic problems. The single currency was up 0.3 percent ...

(Reuters) - The euro and commodity currencies rose on Monday on views Europe will sign off on a rescue deal for Greece and after China's central bank joined counterparts in acting to stimulate growth. The dollar rose to a six-month high against the yen before erasing gains after it failed to clear a key technical resistance point, a break of which could have signaled the end of its four-year downtrend. China cut the amount of cash banks must hold in their reserves on Saturday, boosting lending capacity in an effort to spur the world's second-biggest economy, sparking a broad rally in risk assets. "While the actual RRR (reserve requirement ratio) cut was as expected, the PBoC (People's Bank of China) clearly supporting economic growth in the world's second-largest economy is positive for ...

(Reuters) - The euro rose to a two-month high versus the dollar on Wednesday on optimism Greek leaders are nearing a deal to secure a second bailout and avoid a messy default, though analysts were skeptical of fresh gains with the deal becoming priced in. Following a string of delays in negotiations, Greek leaders will meet again on Wednesday in a bid to agreed yet deeper austerity in return for another international rescue package. A sharp selloff in the single currency was seen as unlikely even if talks drag on for another day, given sizeable euro short positions that investors are reluctant to add to before knowing the outcome of the negotiations. The euro rose to $1.3289, its highest level since December 12, before steadying around $1.3270. Topside resistance came in at the 100-day ...

(Reuters) - The euro fell from six-week highs against the dollar on Monday as a rally driven by short-covering ran out of steam, with investors waiting for a debt swap deal between Greece and its private creditors as well as a summit of EU leaders. Athens is unlikely to reach an agreement to restructure private sector holdings of its debt in time for the summit, at which euro zone leaders are expected to sign off on a permanent rescue fund for the euro zone and agree on inserting a balanced budget rule into national legislation. Suggestions Greece should give up control of its budget policy to European institutions drew an angry reaction from Greek Finance Minister Evangelos Venizelos, which traders said had also weighed on sentiment. The single currency fell 0.8 percent on the day to $ ...

(Reuters) - The euro retreated from six-week highs against the dollar on Monday as a rally driven by short-covering ran out of steam, with investors awaiting news that Greece and its private creditors are closer to a debt swap deal ahead of an EU summit. An agreement to restructure private holdings of Greek debt is unlikely to be reached in time for the summit, at which euro zone leaders are expected to sign off on a permanent rescue fund for the euro zone and agree on inserting a balanced budget rule into national legislation. Suggestions Greece should give up control of its budget policy to European institutions sparked an angry reaction from Greek Finance Minister Evangelos Venizelos, which traders said had also weighed on sentiment. The single currency fell 0.5 percent to $1.3157 ...

(Reuters) - The euro struggled to stay above the $1.300 level against the dollar in Asia on Tuesday after slithering from a three-week peak on news that euro zone finance ministers rejected an offer by private creditors to restructure Greek debt, keeping alive default fears. The euro slipped as low as $1.2987 before steadying at $1.3005. On Monday, it had jumped more than 1 percent to a high of $1.3053 on the EBS trading platform as hopes of an eventual Greek deal drove a wave of short-covering. "The euro's moves are familiar, with positive news leading some to cover their short positions, followed by a correction as investors sell into the rallies," said Koji Fukaya, chief currency analyst at Credit Suisse in Tokyo. The euro hit a session low after a report rekindled fears that ...

(Reuters) - The euro retreated from a three-week peak against the dollar in Asia on Tuesday and looked vulnerable to extending its pullback after talks to reduce Greece's debt burden suffered a setback. The single currency shed some 30 pips on news that euro zone finance ministers had sent back for further negotiations a debt restructuring offer from private Greek bondholders to achieve a lower average coupon on new Greek bonds. The euro dipped to $1.3005 from $1.3034 late in New York, before steadying at $1.3014. On Monday, it jumped more than 1 percent to around $1.3050 as hopes of an eventual Greek deal drove a wave of short covering. Further dousing market optimism, Germany denied a report that it was ready to boost the combined firepower of the euro zone's rescue funds to 750 ...