Euro is struggling to move higher against other majors today following drops precipitated by more drama out of Greece. There is a great deal of uncertainty surrounding the euro right now, and that is weighing on the 19-nation currency. Even though the euro has eked out some gains, trading has been volatile and the gains may not last.
Former Fed Chair Alan Greenspan is predicting that Greece will have to leave the eurozone. Greece is trying to renegotiate the terms of its bailout, and some of the other leaders of countries in the eurozone aren’t particularly amenable to the idea of the ECB modifying the terms. Greenspan believes that this situation is going to end with Greece withdrawing from the eurozone.
Of course, there are concerns about such a course of action. According to the BBC, UK Chancellor George Osborne foresees problems for Britain if Greece exits the eurozone. Additionally, Greece’s Financial Minister has warned that a Greek exit will be devastating to the eurozone. Greece appears to be upping the rhetoric in an effort to convince the rest of the eurozone that it’s a good idea to renegotiate the bailout.
At 11:35 GMT EUR/USD is a little bit higher at 1.1303 from the open at 1.1295. EUR/GBP continues to see-saw, but is currently lower at 1.5208 from the open at 1.5219. EUR/JPY is down to 133.9050 from the open at 134.4750.
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