Euro is off a three-week low today as Forex traders switch to wait and see mode with regard to the Greek bond deal, and with regard to the global economy. Euro has stabilized and is even slightly higher against the other majors.
A surprise fall in January factory orders for Germany has many concerned about the eurozone economy — and that’s without the possibility of another crisis brought on by Greek debt. Everyone is waiting to see what happens with Greek debt. Private bondholders have until Thursday to decide whether they will accept a deal that comes with a haircut in Greek debt restructuring.
There are concerns that a refusal by bondholders could result in a hard default for Greece, and plunge the eurozone back into crisis. Meanwhile, concerns about slowdown outside the eurozone continue to weigh on Forex traders. Better news in the United States, though, has shifted some of the focus. On top of that, some investors and traders are looking for bargains after losses earlier this week.
For now, stability has been reached for the euro. Forex traders are waiting to see what happens next. It’s what comes next that will result in either a rally or greater losses.
At 14:13 GMT EUR/USD is up to 1.3128 from the open at 1.3112. EUR/GBP is also higher at 0.8347, very slightly up from the open at 0.8343.
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