Euro Continues to Struggle in the Wake of Greek Agreement

Euro is struggling today as Forex traders and analysts mull over the agreement reached with Greece over the weekend. The 19 nation currency is down pretty much across the board since slipping from its earlier gains against the US dollar.

Concerns about a party revolt against Greek Prime Minister Alexis Tspiras are on the rise today. Recently, Greek citizens rejected a package of austerity measures through referendum. The package Tspiras agreed to with the Eurogroup is even harsher than those already rejected. As a result, there is doubt over whether the Greek Parliament will really accept the terms of the latest bailout deal.
In the deal, Greece surrenders a large portion of its sovereignty — move that hasn’t been demanded of a eurozone government to this point. Uncertainty about what’s next for Greece and the eurozone is weighing on the euro today as Forex traders consider that a Grexit might be inevitable after all. Euro was even a little higher against the dollar earlier on weak US data, but the latest worry about Greece has erased those gains.
At 14:58 GMT EUR/USD is lower, dropping to 1.0997 from the open at 1.1006. EUR/GBP is down to 0.7068 from the open at 0.7107. EUR/JPY is down to 135.7070.

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