The euro had just started the week gaining versus the dollar and the yen as the negative sentiment regarding the Greek crisis slowly fades, but after comments coming from Greece that the fiscal crisis in the country may spread to other countries, the EU’s single currency went down again.
It seems that markets still didn’t digest the Greek fiscal crisis and the euro is once again falling after events happening in the most problematic southern European Union member. This time, Greek Prime Minister George Papandreou affirmed that the country’s crisis may spread even beyond Europe, if speculators and financial markets with incorrect regulations aren’t stop. Despite Papandreou’s speech, which was in its content nothing new and actually very obvious, the market sentiment towards the euro is currently fragile, and it affected once again the currency’s rates.
Despite talks to solve Greece’s problem in both domestic and international sphere, the situation itself is rather far from a solution, and it’s likely that the euro will still bleed, specially if the situation spreads out to other nation’s in the region and globally.
EUR/USD traded at 1.3620 as of 17:14 GMT from an opening rate of 1.3630 yesterday.
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