Euro trend uncertain amid greek debt negotiations
- Last Updated on 06 February 2012
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The euro tumbled against the US dollar following the release of Friday's Non-Farm Payrolls figure. The better than expected payrolls data renewed faith in the US economic recovery and boosted the dollar. The EUR/USD dropped as low as 1.3065 before staging an upward correction to close out the week at 1.3159. Against the yen, the euro saw fairly significant gains as investors reverted to riskier assets following the positive news. The EUR/JPY closed out the week 100.78, after dropping as low as 100.15 earlier in the day.
Turning to this week, news out of Greece is once again forecasted to impact the markets. Greece has yet to reach a debt-swap deal with its creditors, and is now facing the possibility of default. Unless positive developments occur this week, the euro may come under renewed pressure as investors are likely to revert back to safe-havens like the USD and JPY.