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FOREX-Euro steady after Ukraine unrest shows signs of subsiding
February 24, 2014 / 12:45 AM / 4 years ago

FOREX-Euro steady after Ukraine unrest shows signs of subsiding

* Market eyeing slew of U.S. data due this week

* Reaction to G20 outcome limited

By Shinichi Saoshiro

TOKYO, Feb 24 (Reuters) - The euro held steady against the dollar on Monday, retaining its gains made late last week as political unrest in Ukraine showed signs of settling down for the time being.

After a week of fighting in the streets of the capital, Ukraine’s parliament voted on Saturday to remove President Viktor Yanukovich and also freed his arch-nemesis, former prime minister Yulia Tymoshenko, completing a radical transformation in the former Soviet republic.

The euro stood little changed on the day at $1.3739, having pulled away from last week’s low of $1.3685.

The euro edged up 0.1 percent to 140.92 yen after going as low as 139.22 yen on Thursday.

“Whether currencies draw stability from the situation in Ukraine depends on whether the country can swiftly put together a national government, demonstrations cease, and the European Union or the International Monetary Fund can provide funds to make up for frozen Russian aid,” Masafumi Yamamoto, chief strategist at Praevidentia Securities, wrote in a note to clients.

The dollar was treading water against a basket of major currencies at 80.248. The dollar index has regained some footing after touching a trough of 79.927 last week, its lowest level since late December.

The dollar traded at 102.47 yen, hovering near a three-week high above 102.80 hit on Friday.

Market participants will be monitoring U.S. indicators due this week for further signs of potential weakness in the world’s largest economy, after soft data last week surprised to the downside and dampened prospects for the greenback.

U.S. data out this week includes consumer confidence on Tuesday, new home sales on Wednesday and fourth-quarter gross domestic product on Friday.

Market reaction to the outcome of the Group of 20 meeting of finance ministers and central bank chiefs held over the weekend in Sydney was limited.

Global growth and recent turmoil in emerging markets were in focus, but the G20 communique did not hint towards significant friction between advanced and emerging economies.

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