The euro surged on Friday, ending 1 percent higher against the US dollar and more than 2 percent higher versus the Japanese yen. The coming weekend will likely determine the future (or lack thereof) of Greece in the eurozone.
Greek Prime Minster Alexis Tsipras submitted a new set of proposals for the European creditors. The European Union officials will review them over the weekend and will make decision whether the proposed austerity measures are sufficient to warrant the next tranche of a bailout to the indebted country. French President Francois Hollande welcomed the steps taken by the Greek government while the German authorities were much less enthusiastic.
There is yet another important factor to consider: the parliament in Greece itself should vote for the proposed measures for them to be implemented. And considering that most of them look very similar to the demands of international creditors rejected by the Greek government before, the offer made by Tsipras may be considered a capitulation. It is not likely to sit well with the Greeks.
EUR/USD climbed from 1.1304 to close at 1.1148, reaching the daily high of 1.1215. EUR/JPY soared from 133.88 to 136.89. EUR/GBP settled at 0.7179 after opening at 0.7174 and touching the session high of 0.7223.
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