Eurogroup meeting helps euro
Greece has agreed to make some concessions to its creditors in exchange for new funding before the country runs out of cash. Athens is required to make two repayments to the international monetary fund next month, and after today’s announcement the market is no longer afraid of an immediate Greek default.
Greece will remain a thorn of the side of the European central bank for the coming years, but as far as the market is concerned, it is not going to welsh on their loans in the near-term. This has given a boost to EUR/USD.
The German IFO business climate indicator edged higher in April. It increased to 108.6 from 107.9 in March, and the rise in sentiment also assisted EUR/USD.
EUR/USD has been in an uptrend for the past ten trading sessions, and $1.09 is the initial target. A move through that would put $1.10 on the radar – but this level has been difficult to hold onto in recent months. $1.08 is acting as support and a drop below that would bring the support at $1.0770 into play, and then the 200-hour moving average at $1.0725 would be the next target.