Majors, 17 February 2010

Majors: The Euro traded sideways during London trade hovering between 1.3635 and 1.3675 for the majority of the session with ZEW sentiment survey results having little effect on the currencies. As the market awaited rhetoric from EU officials and the return of U.S investors from the long weekend volatility was low. The head of Euro-Zone finance ministers Jean-Claude Juncker said it was “absurd” the IMF would provide financial assistance to Greece and that they would, and have, provided “technical assistance”. The comments did give the market some confidence that financial aid may not be required boosting the Euro against the Greenback from 1.3650 to an overnight high of 1.3775. Adding to the positive sentiment was Greece’s own finance minister who said the nation was ahead of its deficit reduction targets. Better than expected U.S economic data and big gains in commodity prices during North American trade also helped boost risk appetite triggering gains in both EUR/USD and USD/JPY with the latter peaking at 90.50.