The Euro gained the most in close to two weeks versus the U.S. Dollar on optimism that E.U. Finance Ministers will agree to grant Greece the next bailout payment. The 17-nation currency continued its rally against the Yen after Germany’s Finance Minister, Wolfgang Schaeuble, expressed with confidence his belief that the E.U. Ministers will approve the aid package for Greece. And the Yen traded at the lowest price in six months versus the greenback on data showing Japan sustained the largest trade deficit on record. The Japanese monetary unit slumped versus the majority of its FX trading counterparts as the country’s Finance Minister announced that the trade deficit expanded to 1.48 trillion Yen. Given the data, the S & P announced that it may downgrade Japan’s credit rating.
Meanwhile, the U.S. currency weakened against the majority of its Forex peers as China reduced the reserve requirements for its banks. The news, in turn, decreased demand for world currency safe havens. Economists are predicting that China will implement further easing; and if Greece obtains the 130 bn Euros in aid, risk appetite will dominate the markets.
Other economic releases revealed that the British Pound rose for a fourth consecutive day against the U.S. Dollar after metrics confirmed that U.K. home prices went up in February, suggesting the nation’s economy is in a recovery mode. The Sterling also advanced against the Yen as investors speculated that the minutes from the Bank of England’s policy meeting would likely show that further asset purchasing won’t be necessary.