Currency Analyst since 2010

Euro awaits news from Greece

US dollar remains weaker versus its counterparts after lower-than-expected economic data and the more dovish Fed’s meeting minutes released on Wednesday. US dollar index added to losses and was down 0.3% at 93.940, but managed to keep above this week’s minimum of 93.801. Once again it’s a bank holiday in China, so the amount of liquidity at the Forex market in Asia was low. The US will publish unemployment claims figures (13:30 GMT) and Philly Fed manufacturing index (15:00 GMT).

EUR/USD is trading above 1.1400. According to Bloomberg citing an unnamed official familiar with the matter, the European Central Bank approved a 3.3 billion-euro ($3.8 billion) expansion to emergency funding for Greece’s banks. The next review of this funding program will be on March 5. The market’s now expecting the news on the outcome of the negotiations between Greece and its creditors: important comments will be made today. In addition, the ECB will release its meeting minutes at 12:30 GMT.

GBP/USD is near 1-1/2 month high at $1.5480 after data released yesterday showed strong growth in British wages, and the unemployment rate declined. This strengthens the expectations that the next move of the Bank of England will be to raise interest rates.

USD/JPY dipped to 118.40. Japanese trade deficit contracted, and export growth accelerated. The Reuters Tankan survey showed that Japanese business sentiment edged higher in February. NZD/USD rose to 0.7570. AUD/USD is trying to hold at 0.7800. Aussie faces pressure as S&P warned Australia that its budget put’s its top credit rating at risk.

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