Euro is struggling today after the announcement that a deal has been reached with Greece in order to land another bailout. Even though the deal is supposed to prevent a “Grexit”, the reality is that the “aGreekment” may not actually go through and there are concerns about implementation.
In what some see as capitulation by Greek Prime Minister Alexis Tsipras, an agreement to austerity measures has been reached, and European Union and eurozone leaders have decided to float a bailout deal to struggling Greece.
The agreement was reached after a long weekend summit and reached late Sunday night. Expectations for an agreement helped the euro end the week on a strong note. However, the “aGreekment” calls for austerity measures that exceed the level of what Greek voters rejected in a recent referendum. Additionally, before any of these measures can be put into place, the Greek parliament has to agree. There might be some stumbling blocks to actual implementation, and skepticism about whether or not Greece will actually comply is sending the euro lower against its major counterparts today in Forex trading.
At 14:12 GMT EUR/USD is lower, falling to 1.1042 from the open at 1.1095. EUR/GBP is also heading lower, dropping to 0.7108 from the open at 0.7159. EUR/JPY is down as well, falling to 135.3580 from the open at 135.5650.
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