Euro Push Even Higher as Traders Look for ECB Rates Hike

The euro jumped today for the fourth day, reaching the highest level in three weeks against the US dollar, on the speculation that positive changes in Greece’s situation will allow the European Central Bank to raise the interest rates next week.
The ECB policy makers will meet on July 7 to set the lending rates. ECB President
Jean-Claude Trichet reiterated his statement that the policy makers are in the state of “strong vigilance”. Market analysts point out that in the past Trichet used such words before embarking on tightening. Investors bet that the central bank will increase its main interest rate by 70 basis points over a year, up from 46 basis points yesterday, according to Credit Suisse Group AG.
Greece’s Prime Minister George Papandreou passed the bill for implementation of budget cuts and asset sales, necessary to get the â‚¬78 billion rescue package. Germany’s Finance Minister Wolfgang Schaeuble said today that German banks agreed to rollover about €2 billion in their Greek bonds that mature through 2014.
EUR/USD climbed from 1.4433 to 1.4516 as of 19:17 GMT today after reaching 1.4537, the highest level since June 10.EUR/JPY traded at 116.80 after opening at 116.60. EUR/CHF surged from 1.2042 to 1.2195.

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