Greek Woes Holds Euro at 2-month Low

14 November 2012 8:44:00 AM


The Euro again held just off a 2-month low against the greenback in Asian trading, kept there by growing uncertainty over the situation in Greece and whether or not the Troika will agree to disburse their next bailout loan payment. Economic data from Germany also put pressure on the common currency, with investors concerned that the German powerhouse is now being affected to a greater degree by the debt crisis.

As reported at 11:52 a.m. (JST) in Tokyo, the EUR/USD pair was trading a t $1.2715, a gain of 0.1% but not far from Tuesday’s low of $1.2661. Analysts say that support for the common currency is pegged at $1.2667, the 90-day moving average, with additional support near $1.2653. The EUR/JPY pair edged 0.2% higher to 101.04 Yen, coming off a 1-month low struck yesterday when the pair touched 100.33 Yen. The U.S. Dollar Index, which is comprised of a weighted average of major currencies which includes the Euro, was trading at 81.047 .DXY, close to the 2-month peak of 81.241 .DXY hit yesterday.

The IMF and the E.U.’s policy makers continue to disagree on the future plans for Greece, with the issue centered around the debt to GDP target ratio imposed on them; E.U. policy makers are in favor of granting Greece additional time to meet the target while the IMF is adamant that the 2020 deadline will not be breached. The group won’t meet again until November 20th so for now the decision to release Greece’s payment is on hold. 

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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