23rd January 2012
The EUR/USD pairing is set to see a significant rise by the end of trading this week after recovering from a short rally that saw the pair fall to a 17-month low earlier this month.
Having shrugged off investor fears over the last seven days, the single currency now looks set to achieve its biggest weekly gain in the last three months, Reuters reports.
"If the Greek debt talks do break down, clearly that is going to be one of the risks [to the pairing], said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong.
"Markets will look for any sign that the talks are progressing today to help to sustain the rally in euro."
On Wednesday, rumours emerged of an increase in reserves for the International Monetary Fund to balance the increased risk of default in the eurozone.
This had the impact of providing a boost to the euro, with the currency rising to $1.28 in afternoon trading.
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