The Euro has recovered slightly today as a result of indications that the EU may be closer to a bail-out of the struggling Greek economy.
A report in Germany’s Der Spiegel at the weekend said that the country’s finance ministry has prepared plans for eurozone nations to provide economic assistance to Greece. In addition to this boost came news from traders and analysts that the single currency was due for a short-term bounce, as a result of a build-up of bets against the currency’s foreign exchange rate.
The euro’s value against the dollar increased by 0.2 per cent to $1.3633 – up from a nine-month low of $1.3443 recorded on EBS on Friday.
The dollar suffered in response to fears that the Federal Reserve could be considering an earlier-than-expected increase in base interest rates. However, these fears were slightly quashed by tamer-than-expected US consumer inflation rates on Friday.
The dollar index showed the US currency to be down by 0.2 per cent to 80.469, following an eight-month high of 81.642 on Friday. Daily charts also predicted a strong future for the dollar, with the 55-day moving average increasing to higher than the 200-day moving average.
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