ForexNewsNow – The euro was slightly increasing in value against the US dollar today, trading at 1.3772 as of around 8:00 A.M., GMT.
The EUR/USD pair is up 0.138% on the day and has reached a session high of 1.3777 with a low of 1.3704 so far.
Despite the euro gaining some ground against the dollar today, the foreign exchange markets are still nervous following official assurances from Germany and France on Greece’s future in the euro zone.
The Prime Minister of Finland, Jyrki Katainen, said in an interview published in the German daily Süddeutsche Zeitung on Thursday that Finland does not want Greece to withdraw from the euro area although he said Finland will maintain its demand for Greek guarantees in return for Finnish financial aid to the country.
“Whoever says the only solution is to eject Greece from the euro zone must also admit first that it is not legally feasible. Secondly, someone will have to pay Greece’s debts. And thirdly, if Greece were to be ejected, there would be a significant risk of contagion to other countries within the euro zone,” he said.
German Chancellor Angela Merkel, French President Nicolas Sarkozy and Prime Minister of Greece George Papandreou held a conference call on Wednesday during which Papandreou expressed Greece’s determination to honor its commitments. Merkel and Sarkozy also reiterated their conviction that the future of the country is within the euro area.
However, experts such as Tsunemasa Tsukada, head of foreign exchange at Mitsubishi UFJ Trust and Banking Corp, noted that “some market participants still believe that a Greek default is a real possibility.”
Investors now await the informal meeting of European Union finance ministers and central bankers scheduled for Friday in Poland. As a symbol of economic and financial cooperation, US Treasury Secretary Timothy Geithner is also slated to attend the meeting.