The euro is stable; the US dollar grows on the eve of FED statement

17.06.2015

On Wednesday, the euro is traded almost unchanged, as tensions over Greece maintained while the dollar rose on the eve of the forthcoming statement on monetary policy by the Federal Reserve, later in the trading day.

The EUR/USD keeps on at 1.1247, down from Tuesday's highs of 1.1329.

On Tuesday, the euro fell being influenced by renewed concerns about the approaching of Greek loan repayment to the International Monetary Fund.

Europe demands from Greece to reduce costs in the amount of 2 billion euro for the adoption of an agreement that will unlock additional funds before the end of June, when the country has to pay 1.6 billion euro to the International Monetary Fund.

Greek default can lead to the exit of the country from the euro zone.

However, the comments of the Prime Minister, Alexis Tsipras, on Tuesday, in which he accused the lenders with their desire to "humiliate" Greece to further reduce costs, showed that Athens stands with a firm position in negotiations.

The single currency also fell, after a report showed that the index of German economic sentiment, from the ZEW, fell sharply this month, reinforcing the uncertainty regarding the future of Greece in the euro zone.

The dollar rose against the yen; the USD/JPY pair rose 0.18% to 123.58, up from Tuesday's low at 123.28.

Investors expect the Fed statement later on Wednesday in search of guidance on the possible timing of interest rate increase, which remains close to zero since late 2008.

On Tuesday, data showed that the number of building permits issued in the US, rose in May to almost eight-year high, reinforcing the assumption that the economy is recovering after a weak pace of the first quarter.

The volume of construction of new homes fell last month after a strong gain in April, but the index remains at a level indicating growth in the housing market.

The USD index, showing the position of dollar against the basket of major currencies, remained at 95.24, being up from Tuesday's low of 94.80.

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