Euro Loses Ground on Concerns About Greek Aid

ForexNewsNow | Published on September 28, 2011 at 3:19 am

ForexNewsNow – The euro was trading at around 1.3572 against the US dollar at around 7:05 A.M. GMT today after descending from its bounce up to a high of 1.3667 yesterday – it’s highest level in the past week. The common currency was down 0.06% against the greenback for the day and had reached a high of 1.3598 and a low of 1.3542.

Rumors of a split between EU member states over Greece’s second bailout – worth an estimated 109 billion euros – weighed down on the common currency. It was reported in the Financial Times that seven of the EU member states invovled in the bailout would like private creditors to assume a more prominent role in the financial aid package.

The latest disagreement is a clear reminder of the many hurdles that lay ahead for euro monetary union officials.

In Greece, the national parliament approved a new property tax law yesterday evening that is considered an essential element to receiving further aid from the financially-embattled state’s international creditors in order to avoid a default.

The economic calendar in Europe today is fairly empty. The main event is likely to be the vote in the Finnish parliament over the level of its participation in the European Financial Stability Facility.

In the US, the main economic events taking place today are the release of the US Core Durable Goods Orders (MoM) at 12:30 P.M. GMT, which is predicted at 0.1% after an 0.8% reading last month.

Also, US Federal Reserve Chairman Ben Bernanke is due to deliver a speech on economic growth and emerging markets in a lecture series in Cleveland, Ohio at 9:00 P.M. GMT.

 

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