After Greek talks broke down earlier, the euro plunged against most of its major counterparts. However, the 19-nation currency has recovered and moved higher as investors and Forex traders take a step back and re-evaluate the situation.
Euro is mostly higher right now, after plunging dramatically earlier in the session. The drop to the euro was precipitated by a breakdown in talks over what to do about the Greek bailout. With talks breaking down, many assumed that Greece would announce leaving from the eurozone, and this threw markets into confusion.
However, now many are re-assessing the situation. Even though the talks between eurozone leaders and Greece have collapsed, many think that, in the end, cooler heads will prevail and an agreement can be reached. Eurozone finance ministers have given Greece until the end of this week to request an extension on its bailout, and there are hopes that something can be done.
As a result of this re-evaluation and hope, the euro has recovered its earlier losses and is now mostly higher against its major counterparts.
At 12:34 GMT EUR/USD is higher, moving to 1.1424 from the open at 1.1347, and off the low of 1.1322. EUR/GBP is up to 0.7432 from the open at 0.7386. EUR/JPY is up to 135.7500 from the open at 134.4220.
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