With debt issues of Greece and quantitative easing from the European Central Bank, the euro had plenty of reasons to drop and it did so against the US dollar. Surprisingly enough, the currency moved sideways against the Great Britain pound and even gained on the Japanese yen.
Talks between Greece and its European creditors reached impasse yet again as Greece’s plans for economic reforms were found inadequate. This means that the threat of default is still looming over the indebted country. Prime Minister Alexis Tsipras plans to meet with Russian President Vladimir Putin in hopes to get a financial aid from the Eastern European country. Of course, such talks will not please other countries of the European Union, and Simon Tilford, the deputy director of the Center for European Reform said:
Flirting with Russia is guaranteed to antagonize the rest of the eurozone. It will make it harder for those in Germany who were arguing for a more conciliatory line toward Greece to keep it.
Meanwhile, the ECB continues with its bond-purchase program, pouring money into the troubled eurozone. It adds even more downside pressure on the euro which is struggling to maintain its recent rally.
EUR/USD was down from 1.0885 to 1.0830 as of 23:03 GMT today. EUR/GBP traded close to its opening level of 0.7310. At the same time, EUR/JPY climbed from 129.77 to 130.04, bouncing from the daily low of 129.29.
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Euro Falls vs. Dollar, Resilient vs. Other Majors
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