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Euro Moving Sideways Ahead Of London Session; Euro Meet In Focus

The euro has been moving sideways against most major currencies ahead of the London session on Monday after gaining in the early Asian session.

A rate cut by the Chinese central bank and easing worries about the eurozone economy amid hopes of a solution to Greece's debt woes buoyed risk sentiment.

Eurozone finance ministers will meet in Brussels today to decide on 130 billion euros in Greek aid. On Sunday, Greek Prime Minister Lucas Papademos flew to Brussels to press the deal. Greece urgently needs the financial assistance to avert a default on repaying 14.5 billion euros debts due on March 20.

Meanwhile, the People's Bank of China has decided to cut the banks' reserve requirement rate for the second time in three months to boost lending amid sluggish economic growth.

The central bank said, in a statement posted on its website on February 18, that it will lower the reserve requirement ratio by 50 basis point, effective February 24, to 20.5 percent for large commercial banks.

The euro that reached a new 3-month high of 105.77 against the yen in early deals has been moving sideways after easing slightly. The yen was under pressure after Japan posted a merchandise trade deficit of 1.475 trillion yen in January, wider than analysts forecast. The pair is now trading at 105.11, up from Friday's European session's close of 104.33.

Against the pound and the dollar, the euro climbed to a 5-day high of 0.8341 and a 1-week high of 1.3238, respectively in today's early deals. Presently, the euro is trading at 1.3216 per dollar, as against last week's European session's close of 1.3151. However, the European single currency is trading near Friday's European session's close of 0.8319 against the British counterpart.

There are no major economic data due in the European session.

The U.S. markets are closed today for Washington's birthday.

by RTTNews Staff Writer

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