Reports of Meeting Over Greece On Friday "Totally Wrong Rumors"

MarketCall.net -- May 07, 2011

Euro falls to lowest in more than two weeks on Friday and headed for the worst 
week against the dollar since January after a German news report, later denied, 
suggested Greece has raised the possibility of leaving the euro zone.

Spiegel Online reported eurozone finance ministers met in Luxembourg on Friday 
to discuss Greece, including issues that might come out of the currency bloc. 
Greece, through its Ministry of Finance, then denied it is considering leaving 
the euro zone.

Greek main news was enough to send even more investors unwinding their long 
positions on the euro, which hit a low $ 1.43500, the lowest level since April 
20 on electronic trading platform EBS.

"In markets that already sell the Euro because the statement the ECB (European 
Central Bank) soft lines, which (euro) getting hit hard and impossible to find 
a basis for some time ... even if there is refusal."

In late afternoon New York trading, the euro traded near $ 1.4315, down more 
than 17-month peak of $ 1.49404 on Wednesday scale. With a weekly loss of 3.2 
percent, the euro was on pace for worst week against the dollar since January.

Some traders, though, said the euro is still possible to gain against the 
dollar in the medium term, as the euro zone interest rates expected to rise 
much faster than in the United States.

The euro fell nearly 2 percent on Thursday after ECB President Jean-Claude 
Trichet signaled possible rate hike next month but do not let the door open to 
move in July.

Dollar, meanwhile, also got a boost from data showing U.S. employers added 
244,000 jobs last month, far above what economists had expected. That boosted 
the U.S. bond yields and improve the attractiveness of the dollar against the 
yen. This is the last in the near 80.46 yen.

It also offered respite for a market that was trying to digest a recent run of 
weaker-than-expected Jobs U.S. data that some feared pointed to a slowdown in 
the pace of U.S. growth.


Source : http://www.marketcall.net/


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