The euro is slightly lower in early North American trading Thursday as investors wait for details on a European Union plan to help Greece with its fiscal crisis.
After a meeting of EU leaders in Brussels, European Council President Herman Von Rompuy told journalists, “Euro-area member states will take determined and coordinated action if needed to safeguard financial stability in the euro area as a whole.”
He gave no details and the euro was unable to make sustained gains on the news, instead sinking marginally below late Wednesday levels.
Early Thursday, the euro is at $1.3716 from $1.3734 late on Wednesday, according to EBS via CQG. It was at Y122.98 from Y123.56. The dollar was at Y89.63 from Y89.96. The pound was at $1.5625 from $1.5593, while the dollar was at CHF1.0690 from CHF1.0677 against the Swiss franc.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 79.994 from 80.027.
A news conference is expected at the conclusion of the EU summit later Thursday. Currency strategists at Brown Brothers Harriman in New York said the outcome of the meeting is uncertain and will keep markets on edge.
“I think the market really is looking for specifics, and in the absence of any specifics, there really isn’t anything much else to digest,” said Adam Cole, chief currency strategist at RBC Capital Markets in London.
“If it comes out that it’s just a framework without details, the knee-jerk reaction will be for the euro to sell off again,” Cole said.
“For the last three or four days, we’ve had the general message there would be support for Greece, and the fact we’re seeing that again doesn’t really add anything,” he said.
The dollar was lower against most other currencies Thursday morning as the Australian, New Zealand and Canadian dollars rallied after new data showed the unemployment rate in Australia in January fell sharply to 5.3%, its lowest levels since February last year.
“It’s dragged New Zealand, and, to a lesser degree, Canada, with it,” said RBC’s Cole.
