Euro is slipping again, dropping as concerns about Greece continue to dominate headlines. Once again, European leaders are balking at what needs to be done about Greece, and that is causing concern about what’s next for the country, as well as the effect on the entire eurozone. It’s no surprise that the euro is slipping today.
Once again, disagreement over what to do about Greece is rising to the surface. The International Monetary Fund and the Eurogroup had a very public fight over what to do with a bailout for Greece. Even though the Greek parliament passed a new austerity package, the country still won’t hit its original debt targets, and further funds to help the country are being withheld so far.
The disagreement over what to do is causing disagreement, since the IMF doesn’t want to make another bailout for Athens, and the Eurogroup doesn’t want to allow another debt writedown. At least one of those options will be needed in order to keep Greece afloat, and no one seems to be able to agree.
As a result, the euro is heading lower, and it’s not helping that risk aversion is high anyway because of the US fiscal cliff looming.
At 14:20 GMT EUR/USD is down to 1.2677 from the open at 1.2709. EUR/GBP is down to 0.7985 from the open at 0.8004. EUR/JPY is down to 100.6970 from the open at 101.0350.
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