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Euro Rises Amid Risk Appetite

The euro strengthened against the other major currencies in the European session on Friday amid risk appetite, as Greece's creditors agreed to release a further tranche of funds to Athens.

Eurozone finance ministers approved to release EUR 8.5 billion financial aid to Greece to help Athens to repay loans maturing next month. The latest tranche of money is part of an €86 billion bailout, Greece's third rescue program that runs out next year

In other economic news, data from Eurostat showed that Eurozone inflation slowed as estimated in May, largely reflecting the slowdown in energy price growth. Headline inflation eased to 1.4 percent from 1.9 percent in April. The rate came in line with the flash estimate published on May 31.

In the early European trading, the euro held steady against its major rivals.

In the European trading, the euro rose to 1.1184 against the U.S. dollar, from an early low of 1.1138. The euro may test resistance around the 1.13 region.

The euro advanced to nearly a 2-week high of 124.44 against the yen, from an early low of 123.54. On the upside, 126.00 is seen as the next resistance level for the euro.


Against the pound, the Swiss franc and the Canadian dollar, the euro edged up to 0.8756, 1.0889 and 1.4814 from an early 1-week low of 0.8719, a 2-day low of 1.0865 and nearly a 2-month low of 1.4771, respectively. If the euro extends its uptrend, it is likely to find resistance around 0.89 against the pound, 1.09 against the franc and 1.50 against the loonie.

Meanwhile, the euro advanced to 1.4713 against the Australian dollar, from an early near 1-1/2-month low of 1.4669 and held steady thereafter.

Against the NZ dollar, the euro edged down to 1.5428 from an early high of 1.5483. The euro is likely to find support around the 1.50 region.

Looking ahead, U.S. housing starts and building permits for May and University of Michigan's preliminary consumer sentiment index are set for release in the New York session.

At 12:45 pm ET, Dallas Fed President Robert Kaplan is expected to speak at the Rotary Club of Park Cities in Dallas.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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