Feb. 18: FOREX NEWS
EUR/USD is consolidating just at 1.1400. The European Central Bank will decide later today whether to maintain emergency lending to Greek banks which have so far been rapidly losing deposits. If the ECB refuses to increase the ceiling on the emergency lending assistance, Greek banks will get in trouble as they have almost used up all 65 billion euros granted so far.
Chinese Lunar New Year holidays started today, so some Asian markets will be closed in the coming days. As a result, currency trading during the Asian session should be calmer, though news will have bigger impact on exchange rates.
AUD/USD is trading above 0.7800 supported by the news of the proposed $5.1 billion takeover of Toll Holdings, Australia’s biggest freight firm, by Japan Post Holdings.
USD/JPY is trading in the 119.20 area after an initial decline to 118.87. The Bank of Japan left monetary policy unchanged, but upgraded its assessment of exports and output.