Gains for the U.S. dollar as European Union officials indicate that plans for a second Greek bailout package are close to being finalised

The U.S. dollar gained against most of its major counterparts yesterday, following the European Union officials’ indication that a deal on a second bailout package for Greece could be finalised by Monday.

The euro found support after EU Economic and Monetary Affairs Commissioner Olli Rehn stated that negotiations on a debt restructuring deal for Greece were at a very advanced stage and that they were expected to conclude within the coming days.

In the U.S., the Department of Labour said earlier that the number of individuals filing for initial jobless benefits fell last week to 367,000, beating expectations of a decline to 373,000.

We are finding that the recent snag in the Greek debt saga has disappointed market participants once again, as it is becoming quite evident that neither the European Central Bank nor Germany are willing to budge from their respective positions. How long can this continue?

There are reports that China is considering greater involvement in resolving Europe's debt crisis by participating in the European Financial Stability Fund and the European Stability Mechanism.

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