FOREX-Euro rises after Greece unveils
The euro rose against the dollar on Wednesday after Greece pledged $6.5 billion in pay cuts and tax increases to reduce its deficit, easing worries about the country's debt crisis.
The euro gained roughly half a U.S. cent after Greece's cabinet approved a sweeping new austerity programme on Wednesday, but sentiment remained fragile as markets were wary over whether the package would be enough for Athens to win financial support from Germany and France.
"If the Germans and the French offer support for Greece, the sense of crisis may lift from the markets, and the euro/dollar could see a short-covering relief rally over the next several weeks," said Boris Schlossberg, director of currency research at GFT in New York.
In mid-morning trading, the euro was 0.3 percent higher on the day at $1.3651 EUR=. Stop-losses were seen at $1.3680 with a technical target at $1.3693, traders said.
The dollar fell 0.1 percent to 88.65 yen JPY= after reaching as low as 88.47 yen on electronic trading platform EBS, its lowest since December.
U.S. private employers shed 20,000 jobs in February, fewer than the 60,000 jobs lost in January, data showed on Wednesday. A separate industry report showed the U.S. services sector grew in February at its fastest pace in more than two years.
"The economy is very slowly improving, and this will over time support the dollar," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey
The euro rose against the dollar on Wednesday after Greece pledged $6.5 billion in pay cuts and tax increases to reduce its deficit, easing worries about the country's debt crisis.
The euro gained roughly half a U.S. cent after Greece's cabinet approved a sweeping new austerity programme on Wednesday, but sentiment remained fragile as markets were wary over whether the package would be enough for Athens to win financial support from Germany and France.
"If the Germans and the French offer support for Greece, the sense of crisis may lift from the markets, and the euro/dollar could see a short-covering relief rally over the next several weeks," said Boris Schlossberg, director of currency research at GFT in New York.
In mid-morning trading, the euro was 0.3 percent higher on the day at $1.3651 EUR=. Stop-losses were seen at $1.3680 with a technical target at $1.3693, traders said.
The dollar fell 0.1 percent to 88.65 yen JPY= after reaching as low as 88.47 yen on electronic trading platform EBS, its lowest since December.
U.S. private employers shed 20,000 jobs in February, fewer than the 60,000 jobs lost in January, data showed on Wednesday. A separate industry report showed the U.S. services sector grew in February at its fastest pace in more than two years.
"The economy is very slowly improving, and this will over time support the dollar," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey
