Possible Greek Funding Deal Helps Euro
Euro is getting help today from the possibility of a deal on Greek funding. There are still problems to be worked out — including disagreement over how to proceed between the eurozone officials and the IMF — but for now there is enough optimism to help the 17-nation currency.
Thanks to the latest news out of the eurozone, the euro is getting a bit of a boost. European officials are expected to reach a deal arranging for funding for Greece for another two years. The news is pushing the euro higher, and helping the general feeling of risk appetite.
Euro’s gains, however, could be limited. The International Monetary Fund doesn’t want a temporary, two-year solution. Instead, the organization wants a more permanent solution. However, something is likely to be worked out sometime this week, since leaders have been pretty much pushed into, and time is running out.
Also helping the risk situation right now is the fact that there are glimmers of compromise from opposing parties in the US Congress, and a budget deal that avoids the fiscal cliff might be reached.
At 14:40 GMT EUR/USD is up to 1.2775 from the open at 1.2749. EUR/GBP is also higher, up to 0.8030 from the open at 0.8025. EUR/JPY is up to 103.7450 from the open at 103.7320.
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