As worries grow that the Greek nation could soon default on its current debt and, with bankruptcy, perhaps be compelled to exit the Eurozone area, the Euro has continued to weaken against its major peers. Traders pointed out that even the positive readings from the ZEW Surveys, which are an indication of current and future sentiment among institutional investors in Germany, were unable to sway sentiment for the common currency given what seems to be a dire economic situation in Greece. Yesterday, Greece’s public sector entities were required to transfer unused cash reserves to Greece’s central bank to satisfy current needs.
As reported at 8:27 am (BST) in London, the EUR/USD was trading lower at $1.0665, a loss of 0.7%, while the EUR/JPY dropped to 127.50 Yen. The EUR/CHF was also lower at 1.0238 Swiss Francs, a loss of 0.3% and close to a 3-month trough.
Time Running out for Greece?
Currency strategists say that the absence of any major data, coupled with Greece’s negative headlines, is what is driving the Euro’s fall. Greece’s government remains in negotiations with the IMF and its other creditors in the Eurozone to release the remaining bailout funds in order to repay existing debt, however, time is running out for the island nation.