The euro was little changed during the Asian trading session today following the huge surge yesterday. The currency has rallied on hopes for a resolution of the Greek crisis and also as inflation returned to the eurozone.
Top officials from Europe and the International Monetary Fund were meeting on Monday night in Berlin to discuss the situation in Greece. Among participants of the meeting were German Chancellor Angela Merkel, French President Francois Hollande, European Commission President Jean-Claude Juncker, European Central Bank President Mario Draghi, and IMF chief Christine Lagarde. Last week, Greek Prime Minister Alexis Tsipras said that his country and its creditors are close to reaching a deal, but there were also rumors that this is not true and an agreement is far off.
Whatever the truth, market participants are optimistic for now and are willing to buy the euro. Increasing the appeal of the share 19-nation currency, Tuesday’s report revealed that eurozone annual inflation was 0.3 percent in May after demonstrating no change in April. The data followed Monday’s report that showed small inflation in Germany that was a pleasant surprise to euro bulls.
EUR/USD traded at 1.1140 as of 00:45 GMT today after rallying from 1.0926 to 1.1150 yesterday. EUR/JPY traded at about 138.34 following the rally from 136.31 to 138.39. EUR/GBP advanced from 0.7187 to 0.7265 during yesterday’s trading session and traded near that level during today’s session.
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