The Euro has gained strength today after yesterday’s pledge by French President Nicolas Sarkozy that the eurozone countries would help Greece to ease its high levels of debt.
Other good news came from the International Monetary Fund’s Dominique Strauss-Kahn who told Reuters, the news agency, that the problems being experienced in Greece are unlikely to spread to other eurozone countries. She said, “the euro could move higher if it breaks the $1.3720/1.3750 area, but for the moment I don't see it has the momentum.”
This morning, the single currency's foreign exchange rate was up 0.3 per cent against the dollar at $1.3669. Traders explained that its near-term resistance was around $1.3712, which was the high it reached on 4 March.
Meanwhile, the dollar was down 0.3 per cent to 80.209. The fall was in response to positive US jobs statistics last Friday, which encouraged traders to invest in riskier assets. Mitsura Sahara, chief manager of currency derivatives trading at the Bank of Tokyo-Mitsubishi, explained, “the US jobs report last week helped investor anticipation for further recovery in the next employment report and encouraged them to seek risky assets.”
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