Sunday, 20 May 2012

Euro Rises After G8 Meeting

21.05.2012 | 04:48(44 Leser)

BRUSSELS (dpa-AFX) - The euro surged higher against its most major counterparts in early Asian trading on Monday after the leaders of the G8 nations said that they want Greece to remain in the Eurozone.

The leaders also welcomed the ongoing discussion in Europe on how to generate growth alongside a firm commitment on fiscal consolidation. 

'We agree on the importance of a strong and cohesive Eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the Eurozone while respecting its commitments,' the leaders said in a statement on Saturday after the conclusion of the Cap David Summit at Maryland in the US. 

The leaders pledged to take actions to 'boost confidence and nurture recovery including reforms to raise productivity, growth and demand within a sustainable, credible and non-inflationary macroeconomic framework.' 

The euro that ended Friday's trading at 1.2777 against the US dollar rose to a 6-day high of 1.2814 in early Asian deals. The next upside target level for the euro-dollar pair is seen at 1.285.

Against the Japanese yen, the euro climbed to a 4-day high of 101.44, compared to Friday's close of 100.98. On the upside, 102.0 is seen as the next target level for the euro.

The euro strengthened to a 2-week high of 0.8092 against the pound. If the euro-pound pair gains further, it will break 0.810 and target the 0.815 level. At Friday's close, the pair was quoted at 0.8075. 

Looking ahead, Japan will release final March figures for its leading and coincident indexes at 1 am ET.

In the European session, Switzerland's SECO consumer confidence index and M3 money supply data - both for April and the Eurozone construction output for March are slated for release.

There are no major economic repots due from the U.S. today.

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