The single currency weakened to 1-week low versus U.S. dollar on Greece's ballooning financial burden and cable strengthened to one-month high at 1.6380 on strong U.K. house price data.
As Greece's fiscal deficit highlighted the fragility of some euro zone members, investors awaited comments from a meeting of the 16-country bloc's finance ministers on Monday. The euro fell to a one-week low 1.4335 against the dollar in Asia on speculation that European officials in the meeting today would not offer solutions to Greece’s deteriorating public finances.
Currency markets were starting the week on a quiet note, with lighter liquidity conditions attributable to the Martin Luther King Day holiday in the US. U.S. dollar traded inside 90.63-91.07 and 1.0237-1.0293 range against the Japanese yen n Swiss franc respectively.
The British pound gained from intra-day low of 1.6235 versus the greenback to one-month high at 1.6380 in European trading session on the firmer UK housing data. Rightmove house prices came in at 0.4% rise m/m and 4.1% increase y/y, compared to the previous reading of -2.2% m/m and 1.7% y/y.
Data to be released on Tuesday include Japan consumer confidence, U.K. CPI, Germany ZEW index, EU ZEW survey and Canada BOC rate decision.