Euro Increases Gains Against the Dollar
The Euro increased more against the United States dollar during the Monday trade, influenced by the expectation of an improved debt resolution for Greece and the unknown timing in which the US Feds will increase rates which has placed a dark cloud over the dollar in the market.
The United States Monday morning trade left the EUR/USD pair at 1.0940, which is its greatest value since Wednesday 18 March. Afterward it advanced 1.04 percent to 1.0931 and ended at 1.0648.
The Euro improved as a result of the statement made on Friday by the government of Greece stating their progress in meeting the demands of the European Lenders, hence there is now hope that more funds will be released to resolve the financial crisis that might cripple the nation’s economy.
There will be a meeting between the Angela Merkel, the Chancellor of Germany and Alexis Tsipras, the Prime Minister of Greece on Monday in Berlin. Later on Monday, Mario Draghi, the president of European Central Bank(ECB) will address the European Parliament Committee concerning the Greek bailout situation.
The story is different for the dollar that has been affected by the timing uncertainty that crippled high expectations of an interest rate increase in the month of June – investors do not really know the exact time the United States Federal Reserve will increase rates. However, expectations are still brooding this week, hoping the US will lead others in rates hike.
Home sales reports in the United States are good, the recently published data indicated a 1.2 percent increase in February home sales from 4.82 million in January to 4.88 million in the month of February.