EUR/USD Rallies to 1.11 on Greece

The euro firmed early on Friday, while the safe-haven yen slipped on signs that cash-strapped Greece was making some progress in its efforts to secure fresh funding.  The common currency climbed 0.6 percent against the yen to 134.600 EURJPY=R and put on 0.2 percent to $1.10575 EUR= as Athens took a step forward by sending a package of reform proposals to its euro zone creditors.

“Whether it needs to score 10/10, or 8/10 to be followed by more to-ing and fro-ing on Friday morning, remains to be seen,” said Ray Attrill, global co-head of FX strategy at National Australia Bank.  Indeed, traders said the euro’s inability to sustain levels above $1.11 was a clear signal that euro bulls were none too excited just yet. The common currency peaked at $1.11250 overnight.

Also helping risk sentiment were tentative signs Chinese equities could be stabilizing after a big rally on Thursday.  The safe-haven yen duly retreated, allowing the greenback to climb back above 121.500 yen JPY=, from a seven-week low of 120.410 set mid-week.