A sharp rebound staged by the euro through the end of this past week may seem confirmation that the market has been comforted by the European Union’s pact to rescue Greece under dire circumstances.
Japanese yen price action may remain indecisive for a second week against the US dollar as the currency is pulled in opposing directions by its relationships with investors' appetite for risky investments and the yields on US government debt.
The British pound maintained the broad range from earlier this month, with the GBP/USD finding near-term support ahead of the March low at 1.4782, and the exchange rate may continue to trend sideways over the following week as investors weigh the prospects for future policy.
The Swiss franc is unlikely to repeat last week’s one-sided gains, with a more nuanced outcome up ahead as the currency is pulled in opposing directions by the catalysts driving its major counterparts.
With rating agency Fitch downgrading Portugal's sovereign debt rating and Germany continuing to whine about bailing out Greece, who can blame forex traders for dumping euros?
For the eighth trading day in a row, EUR/CHF has failed to rally. The Swiss franc even ended the day at a fresh record high against the euro as traders test the resolve of the Swiss National Bank.
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