Euro Higher After Volatile Trading

Things have been a bit volatile for the euro today. An ECB decision to stop accepting Greek bonds as collateral is rocking the region. However, even so, the euro has recovered and moved higher, even though at one point in the session it looked as though the 19-nation currency would slip below the 1.13 mark against the dollar.

Earlier today, the European Central Bank announced that it would revoke a waiver allowing Greek bonds to be used as collateral for funding. Normally, the junk-rated bonds wouldn’t be acceptable, but the ECB has been allowing an exception as a way to help keep Greece afloat. Now, though, with an anti-austerity government in place and Greece looking to buck the wishes of the rest of the eurozone, the ECB is exerting its power. The news sent the euro tumbling toward the 1.13 level against the US dollar.
Euro is recovering now, though, thanks largely to the fact that focus has shifted to German industrial orders. This economic measure had its best showing since April of 2008, and since Germany drives the eurozone economy, there are hopes that things will look up.
At 11:37 GMT EUR/USD is up to 1.1433 from the open at 1.1391. GBP/USD is up to 1.5238 from the open at 1.5207. EUR/JPY is up to 1.4321 from the open at 133.6160.

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