The Euro rose and stocks and commodities gained as German Banks draw closer to agreeing to a plan to support Greece. The US dollar weakened as Rating Agencies S&P and Moodys disclosed that they will cut the US AAA credit rating if the US debt ceiling is not raised.
The pair dipped to a low of 1.4325 before breaching the 1.4400 level. After breaking through 1.4400 the EURUSD has rallied above 1.45 to set a current high of 1.4515. The Euro has benefited from the commitment shown in Europe to bail out the bankrupt Greek state.
The cable broke through the 1.60 barrier and has set a high of 1.6117 supported by optimism that the European debt crisis is being addressed by European government leaders rather than by the ECB. The pair has strong support around the 1.60 level and upside targets are 1.6450 and 1.6700.
Published: 30 June, 2011 written by: Andrew Economou , Fx Analyst, Markets.com