EUR/USD Steady Around 1.1150 as EU Leaders Talk

The euro steadied on Monday after an early dip while top-rated bonds stayed in demand as the Greek debt crisis seemed set to rumble on for yet another week, though the market mood was helped by improving trade numbers from China.  The moves were mild amid news Euro zone leaders were to reconvene early on Monday to discuss a compromise proposal on a third bailout for Greece.

Japan’s Nikkei .N225 managed to bounce 1.1 percent, while MSCI’s index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.2 percent.  The single currency quickly steadied at $1.1130 after an initial 0.5 percent drop to $1.1090 EUR=. Likewise, the euro pared its losses against the yen to stand at 136.41 EURJPY= after an early drop to 135.40. The U.S. dollar barely budged against a basket of currencies at 95.974 .DXY.

Demand for sovereign debt lifted U.S. 10-year Treasury futures <0#TY:> 8 ticks, while the S&P E-MINI U.S. stock contract lost 0.3 percent ESc1.  Aiding the euro were rumours the European Central Bank had agreed to delay a Greek repayment of 3.5 billion euros that had been due on July 20.  Euro zone leaders had told the cash-strapped Greek government it must enact key reforms this week to restore trust before they will open talks on a financial rescue.


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