(RTTNews) - Despite the slow progress, optimism regarding reaching an agreement in the Greece debt swap negotiation lifted the euro ahead of the European session on Thursday. The single currency broke past the key 1.33 level against the US dollar for the first time since December 12, 2011.
Greek Prime Minister Papademos said that the progress on debt-swap talks between private sector has been "constructive", although talks stalled over a dispute on cutting pensions.
Meanwhile, media reports citing officials said that leaders of the three Greek political parties in the coalition government of Prime Minister Lucas Papademos have failed to reach a consensus on the adoption of the largely unpopular austerity measures demanded in return for a new international bailout package to avoid a default.
The coalition leaders were in "broad agreement" on remaining points of the tough deal, Papademos told reporters before leaving to discuss the problem with EU and IMF officials. Papademos had reached a final agreement on the terms of the new bailout loan during last-minute negotiations held with officials from the troika of creditors, namely the EU, ECB and IMF, on Tuesday night.
The euro rose as high as 1.3310 against the dollar in late Asian deals on Thursday. The euro-greenback pair is presently hovering around the 1.33 area and its next barrier could be its 100-day SMA of 1.3335. The pair closed yesterday at 1.3259.
Looking ahead, the European Central Bank is set to announce its decision at 7.45 am ET. Economists widely expect policymakers to maintain the rate at 1.00 percent. ECB President Mario Draghi is set to hold the regular post-decision press conference at 8.30 am ET.
