Euro off 7-week low vs dlr but still seen shaky
The euro was off its seven-week low against the U.S. dollar on Tuesday but remained vulnerable on the downside as investors took the opportunity to cut bullish bets on every bounce. Lingering concerns about the euro zone periphery were also keeping the euro on the back foot, with some traders expecting it to trade in a $1.40-1.4250 range in the next few days. "The retracement that we have seen in the euro will continue as we do not expect a positive scenario to emerge from the Ecofin meeting," said Neil Mellor, currency strategist, at Bank of New York Mellon. "The risk-off sentiment remains in place and until that is there it's tough for the euro to rise past $1.4250 -- the mid-March highs. I see strong support at $1.40." The euro gained some reprieve on Monday after euro zone finance ministers approved an emergency loan programme for Portugal but investors were more interested if policymakers will agree on a deal to rescue Greece. more
