EURO rises on Greek hopes



The Euro hit a seven-month high against the yen and held a one-month peak versus dollar when the trading week opened in Asia this morning. The Euro was supported by hopes that Greece will finally secure more emergency loans when EU Finance ministers meet in Brussels today. Euro/USD is trading at 1.2963 after reaching 1.2969 on Friday bringing its weekly gain to 1,75 percent and above the 1.2945 level which it began 2012.
Asian shares inched up on Monday on hopes that Greece can avoid a near term bankruptcy. A regional Spanish vote favoring separatist parties capped gains. The stock futures for US suggest a soft opening while European futures are falling. The Asian Pacific index, MSCI, rose 0,2 percent marking advance for the sixth consecutive day. There is market optimism on the euro area’s ability to reach a deal on Greece, but worries about the vote of Catalonian independence from Spain and its implications for Spain’s austerity measures and bond rates remain high.
Oil, commodities and precious metals saw gains on a weaker dollar last week. Brent crude is trading above USD 111 a barrel in Asia, and gold surpassed the 1750 level on Friday as central banks boost reserves. Both gold and silver fell somewhat back in early Asian trade. Gold dipped below 1750 and silver trades at 34,05. Gold saw its five week high helped by a weaker dollar and investor confidence. Both pension funds. Sovereign wealth funds and private investors have been buying gold along with central banks in Brazil, Russia, Mexico, India, South Korea and Thailand. The buying has also been prompted by devaluation concerns of major currencies.
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