* Euro down 0.2 pct vs dlr at $1.3740
* EU source says EU finmins likely to agree on Greek help
* But analysts say package will not be quick fix
(Changes lead, adds quote, detail)
By Neal Armstrong
LONDON, March 15 (Reuters) - The euro slipped on Monday, as
analysts said a potential financial aid package for Greece would
not be enough to ease overall sovereign debt concerns within the
euro zone.
Euro zone finance ministers were likely to agree on
principles for financial help for Greece on Monday, an EU source
said, [].
The ministers' meeting in Brussels remained the short-term
focus for the market, but analysts said those hoping for a quick
resolution to the Greek debt issue would be disappointed.
"The Brussels meeting is in focus today but we still think
there is no quick fix for the Greek problem. We still think the
euro will go down overall," said SEB chief currency strategist
Johan Javeus in Stockholm.
At 0806 GMT, the euro <EUR=> was trading down 0.2 percent on
the day at $1.3740, retreating from a three-week high of $1.3796
hit on Friday after euro zone industrial orders data beat
forecasts.
"We remain bearish the euro, and continue to target EUR/USD
at $1.30 on a 3-month view given that uncertainty regarding the
fiscal positions of several euro zone members is unlikely to
fade quickly," UBS analysts said in a note.
Traders said there were reports in the market of large
option-related sell orders on approach to $1.3800.
The dollar reversed Friday's losses to hold a slightly
firmer tone after a drop in Asian stocks had prompted some
investors to shy away from riskier assets and as sovereign debt
concerns prevailed.
Traders cited a report in the Financial Times that Moody's
was due to say there would be downward pressure on the United
States' top credit rating unless public finances get in better
shape than the Obama administration predicts.
Moody's later said on Monday that the credit ratings of the
United States, UK, France and Germany and Spain are safe but
risks to their blue-chip status have grown. []
Comments from Chinese Premier Wen on Sunday, saying the yuan
was not overvalued and external pressure was unhelpful, were
also hampering risk sentiment. []
The dollar <.DXY> traded up around 0.1 percent against a
basket of currencies at 79.949. Versus the yen <JPY=>, the
greenback was up around 0.2 percent at 90.65 yen.
BOJ AND FED
The Bank of Japan starts a two-day meeting on Tuesday at
which, sources said, it is leaning towards easing monetary
policy again. []
In contrast, solid retail sales data offered the U.S. dollar
support against the yen, heading into a week when the Federal
Reserve's policy setting committee meets on Tuesday.
U.S. retail sales rose unexpectedly last month despite heavy
snow storms, boosting prospects of a durable economic recovery.
[]
The Bank of Japan, on the other hand, is one of the few
central banks likely to ease its ultra-loose policy even
further.
(Additional reporting by Satomi Noguchi, Editing by Nigel
Stephenson)
