Greek Outlook Worries Euro Trade

The Euro gave up recent gains against the U.S. Dollar during the Asian trading session as investors now take the opportunity to reconsider the effects of Greece’s new target debt plan. Though Greece will be able to meet maturing obligations, what is most worrying to investors at this point is the lack of details as to exactly how the Greek government will put additional reforms into place in order to meet the most recent targets.

The looming fiscal cliff crisis in the United States is also a cause of concern for investors; though the Democratic and Republican parties are working towards a compromise of sorts, a real agreement has yet to be made. Without agreement, the automatic implementation of specific spending cuts and tax increases will be put through early next year. Even the Majority Leader of the U.S. Senate expressed his displeasure and concern over the parties’ failure to progress, which exacerbated investors’ fears.

As reported at 11:00 a.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2934, a loss of 0.1% and off the Tuesday high of $1.3010 on the EBS trading platform. The EUR/JPY pair also tumbled 0.4% to 105.92 Japanese Yen, well off the 7-month peak struck just this past Monday.