Euro is losing ground to its major counterparts today as a report from the IMF suggests that the recent agreement reached with Greece won’t actually fix problems and that a new arrangement — likely a true fiscal union — is probably needed moving forward.
The latest report from the International Monetary Fund indicates that things aren’t going well for the euro, and that the recent agreement with Greece is unlikely to provide long-term solvency. Instead, the IMF lays out different scenarios in which other European countries form a tighter fiscal union in order to support Greece. Another option, of course, is the idea of a Greek exit. Many of those involved are fighting against this option, though, because it still doesn’t guarantee repayment of loans. And any repayment that did come would be in the form of Greek’s heavily discounted currency.
As a result of this uncertainty, as well as expectations that Greek leaders will reject what PM Alexis Tspiras agreed to earlier this week, the euro continues to struggle, especially when compared with other currencies that appear to be shoring up their economies.
At 16:11 GMT EUR/USD is down to 1.0962 from the open at 1.1009. EUR/GBP is down to 0.7018 from the open at 0.7040. EUR/JPY is down to 135.8130 from the open at 135.8790.
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