Home Fundamental Comment Euro rises on hopes Greece will clinch a deal

Euro rises on hopes Greece will clinch a deal

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Euro rises on hopes Greece will clinch a dealThe euro rose against the U.S. dollar on Tuesday on hopes Greece would reach a deal with its creditors before debt repayment to the IMF due on Friday.

European leaders agreed with the IMF to intensify negotiations over Greece’s dilemma during their meeting in Berlin on Monday.

Leaders “agreed that work must now be continued with greater intensity” and that “they have been in closest contact in recent days and want to remain so in the coming days,” according to a statement released by Merkel’s office.

The focus would remain on Greece as investors aim to know whether an agreement will be reached this week or the Hellenic country would face default on its debt obligations.

Greece has to repay €300 million to the IMF on Friday-first installment of a total debt of €1.6 billion due to the IMF this month.

The euro was little changed after a report showing eurozone consumer prices rose for the first time in six months in May.

CPI flash estimate came in at 0.3 percent in the year through May, better than forecasts of 0.2 percent.

Later in the week, the ECB will announce its monetary policy while releases its latest growth and inflation outlook.

The dollar, on the other hand, faced some downside pressure due to profit taking after rising to a six-week high versus a basket of major currencies on Monday.

The U.S. jobs report, which may show the economy created 225,000 jobs in May, will probably shape the dollar’s coming direction.

As of 09:41 GMT, the euro trade around 1.0965 versus the U.S. dollar after setting a peak of 1.0993.

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Ahmed Mamdouh Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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