EU Position Towards Greece Affects Euro

The euro tumbled today after an EU summit in which traders were frustrated by lack of initiative from other bloc’s members to help Greece to prevent its budget crisis to worsen, impacting the continent’s single currency attractiveness, as the region’s economic outlook remains uncertain.

After an European Union summit held today in which government officials didn’t provide concrete measures to help Greece to end its fiscal crisis, the euro pared its early gains this week versus key-currencies like the greenback and the Japanese yen, as it’s being hard for traders to remain confident on the region’s economic prospects. The Australian dollar was one of the best performers versus he Euro as employment numbers in the country had the highest jump in three years, showing a resilience in social figures absent in most EU members currently, since as in Spain, for example, the unemployment rate is near 20 percent and rising.

The European Central Bank lack of concrete attitudes and support towards Greece fuels speculations that the budget crisis in the country might spread to other member countries which are already facing a serious deficit scenario, and this is weighting for another day in the euro’s price.

EUR/USD traded at 1.3678 as of 19:01 GMT from a previous rate of 1.3735. EUR/AUD traded at 1.5358 from 1.5686.

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