The euro took a dive in Asia last week, buffeted by a bombardment of conflicting headlines that left investors with no clear explanation whether Greece may nonetheless secure a new debt agreement with the European lenders.
The common currency eased 2o 135.95 yen, which earlier scaled a three-week peak of 136.70, which also slipped to $1.1314 from a high of $1.1353. On the sterling, the same pulled back to 74.19 pence, but was able to hold on to a seven-year trough of 73.83.
Markets that had been fasten during a marathon meeting of the Eurozone finance ministers were initially lit under fire by the euro after it reported that Greece had now reached an agreement with the European Union that it will be staying in an EU bailout program until otherwise retracted.
The euro then severed and changed when Reuters reportedly alleged that there was no deal yet and a Greek government official insisted that they would not be giving further extension on the extremely unpopular bailout.
Conclusively, the Eurozone finance ministers were still not able to agree with Greece on a final statement or in a similar way to continue its talks until their next meeting in the coming week.
The suppose “Greek drama” has been a huge overhang over the market and nobody is wanting to have a careless Greek exit disrupt the market as of the moment in what is considered a frail European economy to begin with.
With no real conviction whether or not to purchase the euro, the dollar index held a three-week high of 95.115 set overnight. On the yen, the greenback was able to hold firm at 120.22 and within striking distance if a five-week peak of 120.48 correspondingly.
Commodity currencies took a sharp turn for the worse as oil prices slid anew after U.S. stockpiles hit record highs.
The Canadian dollar dipped to almost a two-week low of C$1.2697 per U.S. dollar while the Australian dollar floated down to $0.7716 and back towards the recent six-year trough of $0.7627.
Finally, the next test for the Australian government is employment data. Economists polled by Reuters expect a meager rise of 5,000 jobs in January and the jobless rate to bounce back to 6.2%.