Euro: Who Will Rescue Greece?

The European single currency declined sharply in a day of strong volatility this Thursday as neither Greek officials nor ECB officials have found a solution to solve Greece’s budget deficit’s issues, in a drama that have been lasting more than traders in the region could expect.

Today, after important European leaders from multiple nation’s using the euro affirmed that a bailout for Greece would need the International Monetary Fund support, the euro declined versus most of the 16 main traded currencies in foreign-exchange markets, as persistent uncertainties regarding several Eurozone members growing budget deficit are continuing to affect the confidence towards assets in the region, as traders opt for safer bets regionally, as the Swiss franc, and globally, as the U.S. dollar.

Everyday that passes by with Greece’s budget crisis unsolved, will weigh more on the euro, as it evidences not only the financial complications in some Eurozone member countries, but also the European officials’ inability to provide a feasible solution for the problem, making the euro even more unattractive.

EUR/USD traded at 1.3463 as of 01:46 GMT from a previous intraday rate 1.3519.

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