The euro strengthened against its most major rivals in European deals on Wednesday, as European stocks rose after European leaders gave Greece until Sunday to submit a new plan for financial assistance.
The Greek proposal will be discussed by the leaders of 28-member countries of the European Union at a “decisive” summit on Sunday.
Greece on Wednesday submitted request for new aid program from the European Stability Mechanism, the eurozone bailout fund, as demanded by the European leaders at an emergency summit late Tuesday.
While speaking to the European Parliament in Strasbourg, Greek Prime Minister Alexis Tsipras said he would present details of reform proposal within the next 2-3 says to the EU.
“We want an agreement that will give a final end to the crisis and show there is light at the end of the tunnel,” Tsipras added.
The euro exhibited mixed trading in the Asian session. While the euro rose against the pound and the greenback, it held steady against the franc. Against the yen, the currency fell.
In European deals, the 19-nation currency firmed to a 2-day high of 1.1059 against the greenback, off early low of 1.0973. The next key resistance for the euro-greenback pair may be located around the 1.12 level. At Tuesday’s close, the pair was valued at 1.1009.
The single currency climbed to 0.7190 against the pound, its highest since June 22, while hitting a 5-day high of 1.0471 against the franc. Continuation of the euro’s uptrend may take it to resistance levels of around 0.725 against the pound and 1.07 against the franc. The euro ended yesterday’s trading at 0.7119 against the pound and 1.0415 against the franc.
Meanwhile, the euro reversed from an early high of 134.95 against the yen and has weakened and traded steadily thereafter. The pair was trading near Tuesday’s closing value of 133.88.
Data from the Bank of Japan showed that Japan’s overall bank lending rose 2.5 percent on year in June, coming in at 487.773 trillion yen.
That was in line with expectations, and down from the 2.6 percent increase in May.
Looking ahead, Canada building approvals for May and U.S. consumer credit for May and crude oil inventories data are set to be published in the New York session.
At 2:00 pm ET, Federal Open Market Committee will release the minutes of June policy meeting. At the same time, Federal Reserve Bank of San Francisco President John Williams is expected to speak about the economic outlook at the International Conference of Commercial Bank Economists, in Los Angeles.
The material has been provided by InstaForex Company – www.instaforex.com