Forex - Dollar regains strength as Greek fears resurface
Forexpros - The dollar rose against major world currencies in Asian trading on Tuesday, regaining strength after dipping when leaders at a Group of Eight summit voiced commitment to keeping Greece in the currency bloc.
In Asian trading on Tuesday, EUR/USD was trading down 0.18% at 1.2795.
Leaders from the world's wealthiest eight countries met recently, where all voiced support for keeping Greece in the eurozone, yet doing so will be easier said than done, markets concluded by the time Asian markets were trading on Tuesday.
Such sentiment ended a brief risk-off trading pattern that weakened the greenback.
Greece is headed for elections on June 17, barely a month after a May 6 ballot pushed enough fringe political parties into power to block the traditional parties New Democracy and PASOK from creating a coalition government.
Fears that the leftist Syriza political party will come out well in the upcoming elections have investors nervous Greece will ditch austerity measures, which could mean an end to the flow of bailout money into the debt-stricken country and subsequent exit from the currency zone.
Greek default fears rekindled early Tuesday and ended the euro's recent strengthening trend.
Talk that the Bank of Japan will weaken the yen to spur the Japanese economy sent the yen weakening against the greenback as well.
Meanwhile in China, Premier Wen Jiabao said his government would follow a "proactive fiscal policy and a prudent monetary policy" that prioritizes growth, which did boost the New Zealand and Canadian dollars earlier.
The greenback was up against the pound, with GBP/USD down 0.13% and trading at 1.5814.
The U.S. currency was up against the yen, with USD/JPY trading up 0.06% at 79.35, and up against the Swiss franc, with USD/CHF trading up 0.22% at 0.9393.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0173, AUD/USD down 0.17% at 0.9898 and NZD/USD up 0.05% at 0.7656.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% at 81.21.
The Bank of Japan will move the yen when its announces it decision on interest rates and the need for stimulus later.
Elsewhere, the U.S. will unveil industry data on existing home sales, a leading indicator of economic health to the country's housing sector.
In Europe, eurozone consumer confidence figures are due out as well.
Provided By: Forex Pros
In Asian trading on Tuesday, EUR/USD was trading down 0.18% at 1.2795.
Leaders from the world's wealthiest eight countries met recently, where all voiced support for keeping Greece in the eurozone, yet doing so will be easier said than done, markets concluded by the time Asian markets were trading on Tuesday.
Such sentiment ended a brief risk-off trading pattern that weakened the greenback.
Greece is headed for elections on June 17, barely a month after a May 6 ballot pushed enough fringe political parties into power to block the traditional parties New Democracy and PASOK from creating a coalition government.
Fears that the leftist Syriza political party will come out well in the upcoming elections have investors nervous Greece will ditch austerity measures, which could mean an end to the flow of bailout money into the debt-stricken country and subsequent exit from the currency zone.
Greek default fears rekindled early Tuesday and ended the euro's recent strengthening trend.
Talk that the Bank of Japan will weaken the yen to spur the Japanese economy sent the yen weakening against the greenback as well.
Meanwhile in China, Premier Wen Jiabao said his government would follow a "proactive fiscal policy and a prudent monetary policy" that prioritizes growth, which did boost the New Zealand and Canadian dollars earlier.
The greenback was up against the pound, with GBP/USD down 0.13% and trading at 1.5814.
The U.S. currency was up against the yen, with USD/JPY trading up 0.06% at 79.35, and up against the Swiss franc, with USD/CHF trading up 0.22% at 0.9393.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0173, AUD/USD down 0.17% at 0.9898 and NZD/USD up 0.05% at 0.7656.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% at 81.21.
The Bank of Japan will move the yen when its announces it decision on interest rates and the need for stimulus later.
Elsewhere, the U.S. will unveil industry data on existing home sales, a leading indicator of economic health to the country's housing sector.
In Europe, eurozone consumer confidence figures are due out as well.
Provided By: Forex Pros
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