The euro attempted to rally against the US dollar on Monday but did not follow through with the rally on Tuesday. The shared eurozone currency also gained on the Japanese yen but fell against most other major counterparts.
The euro attempted to rally on the news that Greece replaced Finance Minister Yanis Varoufakis with Deputy Foreign Minister Euclid Tsakalotos as the chief negotiator with European creditors. The announcement brought a glimmer of hope that there might be progress in the negotiations between the indebted country and its creditors. Varoufakis has achieved little, and at the disastrous meeting with other European ministers on Friday he was blamed for wasting time. Yet there are skeptics who say that changing of a figurehead in talks will not change Greece’s stance on its obligations, meaning that the country’s debt problems will not be resolved in the near future.
As for eurozone economic indicators, German import prices rose 1.4 percent in March from the previous month, much more than analysts have predicted. Yet economists are worried that the German Consumer Price Index released on Wednesday will show that the biggest European economy slipped into deflation.
EUR/USD ticked down from 1.0890 to 1.0876 as of 00:45 GMT today. EUR/JPY was down a little from 129.62 to 129.53 following yesterday’s gains. EUR/GBP extended yesterday’s drop, falling from 0.7145 to 0.7140.
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