Euro Slides After Greece Approves Austerity

The euro slipped today, extending yesterday’s losses even though the Greek parliament voted in favor of austerity measures required to get the next tranche of a bailout from the European Union.
While the Greek parliament voted for the bailout, Greek Prime Minister Alexis Tsipras may still encounter hurdles both inside and outside of the country. Inside, many Greeks who have voted against austerity are unhappy with what they perceive to be a capitulation to the foreign demands. Tsipras also faces split in his own Syriza party as many members are unhappy with his decision as well.
Outside of Greece, other eurozone countries should also vote if they want to provide aid for the indebted nation. French politicians voted overwhelmingly in favor of the third bailout, but Germany is yet to announce its opinion. Additionally, there are talks that the International Monetary Fund may refrain from providing help to Greece.
EUR/USD edged down from 1.0945 to 1.0901 as of 9:43 GMT today, trading near the lowest level since June 1. EUR/GBP declined from 0.6998 to 0.6981, trading close to the weakest rate since November 2007. EUR/JPY fell from 135.46 to 135.15.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty − eleven =