EUR still bearish amid negative greek news
- Last Updated on 09 February 2012
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News that Greece has yet to reach a deal to restructure its debt, continued to weigh down on the euro during yesterday's session. The euro took significant losses against both the US dollar and Japanese yen throughout the day after investors chose to place their funds with safe-haven assets. The EUR/USD fell as low as 1.3026, while the EUR/JPY dropped to 99.83 before staging an upward reversal.
Turning to today, Greek news is likely to continue being the driving force behind the euro's movements. Any positive developments with regards to the debt-swap deal are likely to boost the common currency, at least in the short term. At the same time, analysts are warning that the Greek situation is not the only issue facing the euro-zone at the moment. The next most pressing matter is Portuguese debt, which will likely have to be dealt with in the near future as well. Regardless of Greece's problems, it appears that the euro-zone crisis is far from being resolved.