US dollar is surging today in Forex trading, heading higher as financial markets retreat on the latest debacle in the Greek financial tragedy. In a surprise move, Greece has agreed to call a referendum on the rescue plan, and that has sparked global fears that Greece will just default.
A referendum on the Greece rescue plan would mean that citizens — many of whom have been protesting austerity measures necessary to get the bailout needed to keep sovereign finances solvent — choose whether or not to accept the terms offered by the eurozone leaders and the IMF.
The uncertainty that this latest move could lead to a Greek default has the financial markets in a panic. Global equites are in a rout, and safe havens are in high demand. The US dollar is surging as Forex traders look for some sort of stability. It is also worth noting that Greece may not be the only problem; Italy, Spain and Portugal still have issues, and the recent eurozone meeting didn’t produce anything especially helpful for addressing
At 13:40 GMT EUR/USD is lower, dropping to 1.3646 from the open at 1.3859. GBP/USD is also lower, falling to 1.5945 from the open at 1.6080. USD/CAD is gaining ground, with the greenback up to 1.0146 from the open at 0.9997. USD/JPY is also higher, rising to 78.22 from the open at 78.18.
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