RTTN:Euro Surges Up On Easing Eurozone Debt Worries
(RTTNews) - During early European deals on Monday, the euro surged up against the currencies of U.S., U.K. and Japan on hopes for policy action to resolve the eurozone debt crisis, following the meeting of G20 nations.
Policymakers from the G-20 group of nations pressed European leaders on Saturday to soon resolve their debt crisis and come up with a concrete plan when they meet on October 23 for an Euro Area Summit in Brussels, where France and Germany are to articulate on ways to resuscitate an ailing banking sector.
With Greek on the brink of a default, the G-20 vowed to complement efforts to contain the spread of the crisis, stressing on the need to augment the impact of the European Financial Stability Facility, or EFSF - a 440 billion-euro rescue fund that can be used to recapitalize banks, buy sovereign debt, or lend to Euro-zone economies.
European leaders will agree on "key principles" of a second bailout package for the Greek government at the Brussels meeting and efforts are under way to make the most out of the EFSF's resources, European Union Economic and Monetary Affairs Commissioner Olli Rehn said without going into details.
The euro that closed last week's trading at 0.8780 against the pound is now trading near a 6-week high of 0.8799. The next upside target level for the euro-pound pair is seen at 0.885.
The euro jumped to a fresh 1-month high of 1.3916 against the dollar at 4:10 am ET. As of now, the euro-dollar pair is worth 1.3900, compared to Friday's close of 1.3881. On the upside, 1.400 is seen as the next target level for the European currency.
Against the Japanese currency, the euro rose to more than a 5-week high of 107.70 by about 4:10 am ET. Currently, the euro-yen pair is worth 107.60 and if the euro gains further, it may likely target the 110.0 level.
Japan's industrial production grew by revised 0.6 percent month-on-month in August, final data from the Ministry of Economy, Trade and Industry showed. The growth figure was downgraded from the preliminary estimate of 0.8 percent. On an annual basis, industrial production advanced 0.4 percent.
The euro that slipped to a 4-day low of 1.2350 against the Swiss franc at 4 am ET rebounded thereafter. The euro-franc pair is presently trading near last week's close of 1.2387.
Investors now focus on the New York session, in which the U.S. empire manufacturing index for October and the industrial production for September are scheduled for release.
