27 Apr 2015
USD: Benefits from growing concerns over Greek debt - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that having started the day with a positive tone, the dollar reversed its course in the American afternoon and the EUR/USD pair rose as high as 1.0925 before settling below the 1.0900 mark.
Key Quotes:
"There was no relevant data in the Euro zone, and early dollar strength was attributed to growing concerns over the uncertainty on Greece´s future, after the country failed to reach an agreement with the rest of the Euro group during the meeting developed in Riga this last weekend."
"But the American currency was hit by worse-than-expected US data, as the service sector grew less than expected in April, printing 57.8 against 59.2 in March, whilst the Dallas Fed Manufacturing Business Index for the same month came out at -16, against a -14 expected."
"Furthermore, the Greek government announced a reshuffle of its negotiating team, taking the leading role away from Finance Minister Varoufakis."
"The negotiations will now be in the hands of the deputy Foreign Minister, Tsakalotos, whilst Varoufakis role is now limited to supervise negotiations. Investors are seeing the change as a clear sign that Greece wants to reach a deal, particularly after Varoufakis was reviled by its counterparts in the media last Friday."
"Later on in the week, the FOMC is expected to maintain its economic policy unchanged, another factor weighing on the USD."
Key Quotes:
"There was no relevant data in the Euro zone, and early dollar strength was attributed to growing concerns over the uncertainty on Greece´s future, after the country failed to reach an agreement with the rest of the Euro group during the meeting developed in Riga this last weekend."
"But the American currency was hit by worse-than-expected US data, as the service sector grew less than expected in April, printing 57.8 against 59.2 in March, whilst the Dallas Fed Manufacturing Business Index for the same month came out at -16, against a -14 expected."
"Furthermore, the Greek government announced a reshuffle of its negotiating team, taking the leading role away from Finance Minister Varoufakis."
"The negotiations will now be in the hands of the deputy Foreign Minister, Tsakalotos, whilst Varoufakis role is now limited to supervise negotiations. Investors are seeing the change as a clear sign that Greece wants to reach a deal, particularly after Varoufakis was reviled by its counterparts in the media last Friday."
"Later on in the week, the FOMC is expected to maintain its economic policy unchanged, another factor weighing on the USD."