Forex - Euro steady as Greece optimism offsets France downgrade

Posted by Forexsq 612 days ago (http://www.reuters.com)
img forexsq - The euro held steady against the dollar on Tuesday as cautious optimism that euro zone ministers would release funds to debt-ridden Greece offset a cut in France's credit rating.

Finance ministers meet later in the day to discuss unlocking delayed aid payments to Greece, a day after Athens passed laws to enforce budget targets and appease foreign lenders.

Signs that Greece seemed to be on track to receive the funding supported demand for the euro, which pared earlier losses after ratings firm Moody's stripped France of its triple-A status late on Monday.

Analysts said the cut did not come as a surprise after Standard & Poor's downgraded France in January, and the finance ministers meeting could have a bigger impact on the euro if policymakers fail to meet market expectations.

"Although we know Greece's problems will not be resolved today many people would like to put this particular part of the issue to bed, and there's no guarantee of that," said Jane Foley, senior currency strategist at Rabobank. forex

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