Euro Slide Halts as Greece Claims an Agreement

Late yesterday, Greek officials announced that they were drafting an agreement for their creditors. The news halted the euro’s slide, as did an interest in the 19-nation currency by holidaymakers and others.

Euro has seen its most recent slide come to a stop, and is even a little higher today, thanks to yesterday’s developments. Greece claims that it is working on a draft agreement with its creditors. Even though some eurozone officials and others dismissed the claims, just the fact that Greece is fighting is helping slow the euro’s descent.
Also helping the euro is a demand for more of the 19-nation currency. In order to take advantage of the low currency value, some people are trading in their sterlings and dollars for euros so they can vacation less expensively.
There are still concerns about the euro, however. Greece still has a payment coming due, and confidence is not there. Spain is also presenting problems. And, of course, the latest comment from the ECB’s Ewald Nowotny indicates that quantitative easing in the eurozone could go on for longer than many expect, since unwinding it would take time and care.
At 10:28 GMT EUR/USD is up to 1.0936 from the open at 1.0904. EUR/GBP is up to 0.7141 from the open at 0.7101. EUR/JPY is up to 135.7500 from the open at 134.8370.

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