Euro a Little Lower, Even with Greek Aid Agreement

Euro is a little lower right now, but the 17-nation currency has been paring some of its earlier losses. Euro is struggling against the US dollar today, even though the news should ostensibly be helping the 17-nation currency.

First of all, the news out of the eurozone is mostly positive. European finance ministers lent their official backing to the latest Greek deal, so money should be flowing to the embattled country quite soon. This is providing hope to other countries riddle by sovereign debt that they will get help if they need it.
Another bit of helpful news is that the European banking union is a little closer to reality. However, there are still quite a few details to be ironed out, and likely some confrontation over those details before any sort of agreement is actually reached.
So, even though there is some hopeful news out of the eurozone, and even though the Federal Reserve announced new easing to begin in January for the United States, the euro is still struggling. There’s just too much uncertainty right now to support big gains for the euro.
At 14:07 GMT EUR/USD is down to 1.3065 from the open at 1.3074. EUR/GBP is holding steady at the opening level, 0.8096. EUR/JPY is up to 108.9935 from the open at 108.8545.

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