Euro continues to log gains today, heading higher as the bond market remains volatile and as the Greek prime minister insists that his country’s loan payment will be made on Friday as agreed.
Euro is surging today as stocks drop and bond yields rise. Mario Draghi, the President of the European Central Bank, warned yesterday that bond market volatility would be around for a while. This is creating uncertainty in stock markets around the world. With a bond sell off underway in the eurozone, and the US dollar struggling under the disappointment of recent economic data, the euro is making headway.
Also providing some support for the euro today is the fact that Greek Prime Minister Alexis Tspiras insists that the payment due to the International Monetary Fund would be completed on time. He says a deal is near with the other EU leaders, even as one of his ministers insists that some demands of Greece’s creditors won’t be met.
It’s an interesting situation, and one that has, so far this week, resulted in surging performances for the 19-nation currency. But there is likely some weakness in the future.
At 10:21 GMT EUR/USD is up to 1.1355 from the open at 1.1274. EUR/GBP is up to 0.7362 from the open at 0.7349. EUR/JPY is up to 140.9560 from the open at 140.0940.
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