The euro rose versus the dollar and yen after Greek Prime Minister George Papandreou signaled he won’t call for a referendum on a bailout package, easing concern voters would reject it and send the nation into default. Papandreou reached out to his political opposition about setting up a transitional government, indicating an accord would secure aid and remove the need for a referendum on euro membership.
The 17-nation currency earlier approached a three-week low versus the greenback after the European Central Bank cut its key interest rate to 1.25 percent and said Europe is heading toward a “mild recession.”
The dollar dropped as stocks and commodities rallied, damping demand for haven assets.
The euro gained 0.8 percent to $1.3850 at 1:50 p.m. in New York, after falling as much as 0.7 percent. It dropped to $1.3609 on Nov. 1, the weakest since Oct. 12.
EUR/USD: yesterday the pair rose.
GBP/USD: yesterday the pair rose.
USD/JPY: yesterday the pair holds in range Y77.90-Y78.10.
On Friday the G20 Summit continues in Cannes today and focus will also continue on the unfolding situation in Greece, while the US data
highlight of the week takes center-stage later in the session. This morning also sees the release of the final services PMI releases from the main European states, with France at 0848GMT, Germany at 0853GMT and the main EMU release at 0858GMT.UK data is limited on Friday with just the 0900GMT release of SMMT New Car Registrations and the 0930GMT release of Q3 Insolvency Data. The main data release comes at 1230GMT when US non-farm payrolls are forecast to rise 95,000 in October after the stronger than expected September reading and upward revisions to July and August payrolls. The unemployment rate is forecast to stay at 9.1% for the fourth straight month.
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