RTTN:Euro Rallies To New Multi-day Highs Against Most Majors
(RTTNews) - The euro that eased slightly in Asian deals on Friday rebounded in early European trading and hit fresh multi-day highs against most major currencies as risk appetite grew on the back on Eurozone's approval of the second bailout package to Greece.
Heads of the state or government of the euro area and European Union institutions, together with the International Monetary Fund, agreed on a new program worth EUR 109 billion during a crucial summit held in Brussels, Belgium on Thursday.
This is expected to fully cover the financing gap, and will include voluntary contribution of the private sector, the European Council said in a statement.
Another key element of the rescue plan is the decision to use the European Financial Stability Facility (EFSF) as the financial vehicle for the loan disbursement.
During the summit, it was decided to lengthen the maturity of future EFSF loans to Greece to the maximum extent possible from the current 7.5 years to a minimum of 15 years and up to 30 years with a grace period of 10 years.
The euro is trading at an 11-day high of 0.8849 against the pound with 0.890 seen as the next upside target level. At yesterday's close, the euro-pound pair was quoted at 0.8840.
Against the yen, the euro is trading at an 11-day high of 113.47, compared to yesterday's close of 113.07. The next upside target level for the European currency is seen at 114.0.
The euro that closed yesterday's trading at 1.1767 against the Swiss franc is now worth 1.1850. This set the highest level for the euro since July 11. If the euro gains further, it will rise above 1.190.
The euro is presently worth 1.4430 against the US dollar, up from an Asian session low of 1.4383. If the euro strengthens further, it will break yesterday's 1- 1/2 -month high of 1.4440 and target the 1.450 level. The euro-dollar pair ended yesterday's trading at 1.4437.
Against the Canadian dollar, the euro is trading at an 8-day high of 1.3633 with 1.365 seen as the next upside target level. At yesterday's close, the euro-loonie pair was quoted at 1.3620.
The euro is now worth 1.3315 against the Aussie, compared to an Asian session low of 1.3273. The next upside target level for the euro is seen at 1.335.
Looking ahead, the German IFO business climate index for July is due for release at 4 am ET.
Canada's CPI for June and retail sales for May are expected at 7 am and 8:30 am ET, respectively.
