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Euro rises ahead of eurogroup meeting

Euro rises ahead of eurogroup meeting

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ÂÅËÃÉÏ - ÓÕÍÏÄÏÓ ÊÏÑÕÖÇÓ ÔÇÓ ÅÕÑÙÐÁÚÊÇÓ ÅÍÙÓÇÓ ÓÔÉÓ ÂÑÕÎÅËËÅÓ (EUROKINISSI // Åëåýèåñç ç ÷ñÞóç ãéá ìç åìðïñéêïýò óêïðïýò. Íá áíáöÝñåôáé ùò ðçãÞ ôï Óõìâïýëéï ôçò ÅõñùðáúêÞò ¸íùóçò.)The euro rose against the U.S. dollar for a second straight session on Thursday ahead of Eurogroup meeting that is likely to witness Greece and its international creditors reaching a deal.

Expectations are low that Greece would succeed to secure an accord with its creditors during Thursday’s euro-area finance ministers meeting in Luxembourg.

“I honestly believe this will be pretty short,” senior EU official involved in preparing for the eurogroup meeting.

In fact, his announcement plays down the importance of the meeting for Greece, where some investors have expected it to be a make-or-break meeting.

German Chancellor Angela Merkel said it is possible for Athens to reach an agreement with its creditors, and she would work to keep Greece in the 19-nation region.

As of 11:40 GMT, German 10-year bond yield dropped 6.02 percent or 0.047 points to 0.765 on concerns from Greece.

The single currency benefited from the drop in the dollar against major currencies after dovish comments from Fed Chair Yellen on Wednesday.

Seven FOMC members are in favor of raising rates only once or not at all this year. Also, Fed officials predict slightly lower rates at the end of 2016 and 2017, compared to their projections in March.

The euro may come again under pressure with the end of June as a debt payment of 1.6 billion euros to the IMF matures.

The 4-hour chart for the EURUSD shows a rise in the euro, but it faced pressure as it moved above the upper line of the Bollinger Bands.

The price has moved to overbought areas, but still provides no sign of a possible downside correction, as indicated by RSI 14 momentum indicator.

Euro rises ahead of eurogroup meeting fxcomment

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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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