Speculation around Greece’s default pulls EURO/USD down

The forex markets kept demonstrating high over the speculation around the default of the Greek debt; the Euro/USD started the week trading down.

Bloomberg speculates that Germany is preparing for default by Greece: officials in Merkel’s government are considering ways to save German banks in case Greece will default on its debt as it won’t meet the terms of its EU-IMF aid, which include budget cuts.

Greece’s Finance Minister Venizelos said yesterday that Greece government will impose a new property tax that supposes to cover €2 billion (nearly $2.7 billion) of Greece’s budget shortage in the next fiscal year. Will this decision pass? Currently it’s not clear.

It seems that the Greek potential default is affecting all major exchange rates including USD/CAD.

On the other hand, Eurogroup head Jean-Claude Juncker said on Monday: “We will do everything that will be needed in order to defend the euro,” 

This may include, if needed, increasing the size of the bloc’s bailout fund.

In the mean time, the Euro is currently being traded slightly down after it had started the day with sharp falls; there were sharp falls in the European stock markets but currently the US stock markets are traded up.

Euros to USD is currently traded down at 1.3677 a 0.0168% decrease as of 22:03*.

USD to Canadian dollar exchange rate is traded moderately up at 0.9928 a 0.0134% increase as of 22:03*.

AUD/USD is traded down at 1.0346 a 0.0070% decrease as of 22:03*.

(* GMT)

[ratings]

For more on this subject:

Leave a Reply

Your email address will not be published.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