The Euro edged lower in London trading on Thursday after there was news that no clear resolution was forthcoming on the Greek debt problem. Earlier, one media outlet had given investors some hope that an agreement was at hand, but that report turned out to be erroneous. Regional financial ministers were not swayed by the Greek government’s pleas to modify the terms of the bailout loan which included the implementation of harsh austerity measures.
As reported at 8:20 am (GMT) in London, the EUR/USD was trading nearly 0.1% lower at $1.1326, falling from a session peak at $1.1353. The EUR/JPY also eased from a 3-week high at 136.70 Yen to trade at 135.95 Yen.
Swedish Central Bank Surprises
In Sweden, the Riksbank surprised investors with a rate cut, though analysts had speculated that the Swedish central bank would have maintained rates at zero. The Riksbank lowered its repo rate from zero to -0.10%, and simultaneously announced a stimulus plan that would help lift the country from its deflationary trend. The central bank also hinted at more rate cuts in the future. After the announcement, the EUR/SEK was trading higher at 9.6046 Crowns, a gain of 1.07%, with today’s trading range at 9.4593 Crowns at the low end and 9.6857 Crowns at the high.