Unrest in Greece Sends Euro Lower

Unrest in Greece and uncertainty about a Greek bailout deal are weighing on the euro today. Euro is lower as concerns about an incomplete Greek debt deal rise. Additionally, continued strikes in Greece, and general unrest in the country, are adding to worries that the Greek parliament won’t vote to accept new measures stipulated by Eurogroup leaders. It is little surprise, then, that euro is falling against the US dollar.

Eurogroup leaders expressed doubt that Greece’s proposed austerity package would go far enough, and stipulated for even more austerity. Additionally, European leaders also asked that Greece’s parliament approve the measures, and that an agreement be worked out to guarantee that Greece will adhere to the measures no matter the outcome of upcoming elections.
All of these new stipulation have cast doubt on whether or not a Greek deal can get done. In the meantime, unrest in Athens is causing concern amongst Greek politicians. Forex traders are now wondering if Greece will default. And, while it seems as though the eurozone and credit markets can handle a Greek default, things might get really ugly if other countries — like Italy — end up defaulting as well.
At 15:59 GMT EUR/USD is down to 1.3188 from the open at 1.3285. EUR/GBP is down to 0.8373 from the open at 0.8400. EUR/JPY is lower at 102.2965, down from the 103.1900.

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