Euro bounces back on commodities, still on shaky ground
The euro bounced back on Monday as some funds scooped it up after a steep drop last week but speculators' bloated long positions in the currency pointed to a risk of further falls even after policymakers denied a report that Greece may consider quitting the euro zone. A rebound in various commodity prices after their rout last week also helped to pull up the euro from its three-week low hit last week and lifted commodity currencies. But traders were not sure if the worst was yet over for commodities, and said that the euro looks vulnerable after the European Central Bank last week quelled expectations of a rate hike next month. "Given the fast pace of the euro's rise up until last week, I wouldn't be surprised if the euro falls below $1.42," said a Japanese bank trader in Tokyo. One possible target for the euro is a 38.2 pct retracement of its rally this year at around $1.4150. more
