Euro Higher Even as Grexit Talk Swirls

Euro is mostly higher today against its major counterparts, even after increased speculation that Greece will need to exit the eurozone. Euro is getting help from weakness in other currencies, particularly the dollar.

Euro is getting a boost today, which some may find surprising, considering the increasing chance that Greece will have to exit the eurozone. Greek policymakers are wielding the threat of an exit. While European Union officials maintain that they are committed to finding a way to keep the Greece in the 19-nation currency union, there is an increasingly vocal cadre of EU members that think a Greek exit is desirable.
For now, the euro is getting help mainly from the fact that other currencies are struggling. The dollar was dealt a blow yesterday with the Fed’s dovish interest rate statement, and the pound is pulling back to consolidate after yesterday’s surge fueled by economic data.
There is still time to prevent a Greek exit from the eurozone, but some analysts and traders are increasingly pessimistic about the possibilities, and there are already suggestions for ways the euro could weather the loss of Greece.
At 12:25 GMT EUR/USD is up to 1.1398 from the open at 1.1338. EUR/GBP is up, gaining to 0.7162 from the open at 0.7160. EUR/JPY is lower, heading down to 139.82 from the open at 139.93.

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