Euro Still Can’t Decide Where to Go

Uncertainty about the situation with Greece continues to plague the European Union, causing volatile swings of the euro. The currency erased its yesterday’s rally only to resume its upward movement and then drop again.
German Chancellor Angela Merkel said yesterday that Greece has to proceed with the planned budget cuts to deserve an extension of the debt-repayment deadline. Merkel stated:

We can offer solidarity only if Greece’s stability and eagerness to reform is proven. We can get out of this difficult situation only if we properly rebuild that foundation, not just help without Greece doing anything.

This statement strengthened speculations that Greece will be forced to restructure its debt.
EUR/USD fell from 1.4408 to 1.4389 and EUR/JPY traded at 116.56 as of 10:31 GMT today after opening at 116.53.

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