Euro is pulling back a little on uncertainty today. Euro was higher earlier on the news that central banks would coordinate efforts in the event that Greek elections go badly this weekend, but there is enough disquiet about what’s ahead that the euro is slightly lower.
Euro got a bit of a boost earlier on the expectation that central banks would unite in efforts to blunt the worst of the damage if Greek citizens decide to elect anti-austerity, anti-bailout politicians. That decision by Greeks could very well result in Greece’s withdrawal from the eurozone. That withdrawal could, in turn, be seen as an encouragement for other countries to withdraw from the currency union. Global economic concerns aren’t helping the situation, either.
Concerns about the euro are there, but most Forex traders appear to be taking a wait and see approach. It depends on how the June 17 election turns out. There is enough hope to keep the euro from completely tanking, and just enough uncertainty to give the US dollar the edge on the Forex market. It’s a pivotal weekend for the euro, and the coming week is likely to set the course for the 17-nation currency.
At 15:23 GMT EUR/USD is slightly lower at 1.2630, down from the open at 1.2632. EUR/GBP is down to 0.8072 from the open at 0.8119. EUR/JPY is down to 99.4285 from the open at 100.2265.
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