Previous Story
Euro falls as Greece’s creditors meet
Optimism on a Greek deal this week between Greece and its creditors to avoid a default has been helping lift sentiment in the markets. On Monday the euro was lifted to test the key level of $1.14, though it has slipped down on Tuesday. However, stock markets are higher, with the pan-European FTSEurofirst 300 index gaining 0.8 percent, hitting a three-week high and adding to gains of more than 2 percent on Monday. Germany’s DAX was up 0.8 percent. Greek stocks rose 2.7 percent.
A Eurogroup meeting on Monday ended with much hope for an agreement to be reached by the next Eurogroup on Wednesday but much work was still needed to be done after Greece presented new proposals on Monday that Eurozone leaders welcomed as a basis for a possible agreement to unlock more funds for Greece to avert default and a potential exit from the euro.
Eurozone leaders agreed on Monday night that the institutions representing Greece’s creditors (European Central Bank, the IMF and the European Commission) should try to wrap up a detailed agreement by Wednesday evening for their finance ministers to approve and present to them on Thursday.
There is still a lot of risk that lies ahead as there is concern that the deal will not get through the Greek parliament. A lot will also depend on the scale of outflows from the banks.
The post Euro falls as Greece’s creditors meet appeared first on Forex Circles.
