There was a real sense that the market was unable to make up its collective mind about whether the news from the inconclusive Eurogroup meeting in Riga on Friday was worse for the Euro than the disappointing Durable Goods report from the US on the same day was for the US dollar. That report capped a series of poor economic results that are calculated to encourage delay on the part of the Federal Reserve in raising core interest rates. The last time Durable Goods came in at such a poor level, the Fed decided to introduce QE3.
So there was a sideways movement of the EURUSD pair for the morning of the London session.
…until Greece news comes to the rescue
Then, some little time before the start of the New York session, a story appeared on the newswires that the Wall Street Journal was reporting that the Greece negotiating team for the resolution of the crisis in the Eurozone that the Hellenic Republic has precipitated is being reconfigured. The suggestion was that the Finance Minister, Yanis Varoufakis, will take a less prominent role. This will, at least, give some satisfaction to the other Eurozone Finance Ministers, who are reported to have given Yanis quite a piece of their minds at Riga. They are reported to, among other things, have let him know how much they resented his lecturing style when taking to them.
This news had the effect of giving a decent lift to the Single Currency. Will it last?