Talks about the future of Greece remaining in the Eurozone, and the Greek government’s ability to repay an upcoming IMF loan appear not to have been very optimistic as FX traders send the Euro lower versus its major rivals including the US Dollar and the Japanese Yen. On Tuesday, the Greek government is due to repay the IMF a loan in the amount of €750 million or else it is at risk of default and could be compelled to exit the Euro area. The Greek government continues to butt heads with the group of IMF and EU lenders, specifically over labor, pension and budgetary issues as well as the austerity reforms still needed.
As reported at 9:18 (BST) in London, the EUR/USD dipped to $1.1157, a loss of 0.5% and well off last Thursday’s 2-month high set at $1.1392. The EUR/JPY is also lower at 133.8650 Yen, a decline of 0.23%.
Kiwi Dollar under Pressure
In New Zealand, speculation that the central bank is likely on the verge of a rate cutting cycle has sent the New Zealand Dollar lower. The NZD/USD pair had at one point lost 1.5% of its value and was trading at a 7-week low of $0.7372; currently, the pair is trading at $0.7383, well off the session high of $0.7742. Upcoming data releases on growth and inflation will help FX traders to better gauge the likelihood of a rate cut from the RBNZ.