Euro Rises Even as Outcome of EU Meeting Remains Uncertain

The euro rose today even as today’s meeting of the European Union policy makers in Brussels can result in restructuring of Greece’s debt, fueling concerns about Europe’s credit crisis.
Greece wants extensions of its credit maturities, but other European countries, Germany especially, demand bigger budget cuts before providing more aid. Volker Kauder, the parliamentary leader of the Christian Democratic bloc, said that there will be “No help without something in return” and a “soft restructuring” is not out of question. It’s surprising to see the euro to gain under such circumstances, but perhaps some euro bulls put their hopes on the forthcoming meeting.
EUR/USD rose from 1.4088 to 1.4142 as of 12:20 GMT today after falling to 1.4047.

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