FX round-up: Euro edges up against rivals amid Greek deal hopes
The euro currency edged up against major rivals on Wednesday as traders wait to see if Greece and its creditors can agree on a package of reforms that will mean the release to Athens of emergency funds.
The deputy finance ministers of the euro area will this afternoon discuss progress and the prospects for a deal.
Greece's government and institutions have been working since Friday on a proposed list of economic reforms.
"European officials suggest that an agreement opening the door to a payment to Greece was still not in sight as the agenda put forward by Greece still needs to be completed," noted Barclays.
Traders were optimistic that an 11th hour deal for Greece will avert a major credit default, lifting the single currency, together with better than expected data. Eurozone March manufacturing PMI came in at 52.2 compared to the preliminary reading of 51.9.
At 0920 GMT, the euro was 0.4% higher against the US dollar to trade hands at $1.07428. Against the British pound, the currency was 0.2% higher at 0.7236. Meanwhile the pound was a little firmer against the US dollar, up 0.2% to change hands at $1.48432.
The British currency was buoyed by Tuesday's upward revision to UK economic growth figures in the last quarter of 2014. Attention now turns to manufacturing data out of the UK for more clues over the health of the economy.
Over in the US, the dollar eased as market participants speculated on the likelihood of a rate rise by Federal Reserve this summer. Last week's somewhat dovish Fed chair Yellen's comments were followed by Fed speak this week which were evenly balanced, from slightly dovish to hawkish rhetoric leaving investors back in square one when attempting to second guess the Fed.
The dollar index, a measure of the US dollar's value relative to a basket of foreign currencies, was off 0.2% to 98.32. Against the safe-haven Japanese yen, the US dollar slipped 0.2% to change hands at 119.92.
All eyes are now on US ADP jobs data and PMI manufacturing, due later in the session.