With E.U. leadership offering no more of a solid outcome than a little positive affirmation that Greece should work towards staying in the Eurozone, the pressure on the common currency continues to mount. Markets appear impatient for a resolution, either way, and the Euro’s volatility in the interim will continue to plague investors. As reported at 12:54 p.m. (JST) in Tokyo, the Euro slipped to $1.2575, a loss of 0.1% but edging back up off the 22-month trough of $2.545 struck yesterday. Analysts say that that level should provide some support, with the nearest beyond that at $$1.2500. One Tokyo-based economist believes that markets could see $1.20 before June’s end.
The likelihood of a Greece withdrawal from the Eurozone is increasing by the day, and it has been rumored that other sovereign members of the Eurozone have been cautioned to prepare a contingency plan in the event Greece does leave. Greek politicians have been urged to abide by the terms of the existing bailout plan and stay the course, i.e. maintain the austerity measures. However, that seems unlikely given the political climate there and the strong possibility that the mid-June elections will usher in a new, anti-austerity power.