Euro Struggles Higher as Greece Weighs

Euro is struggling higher against the US dollar today, gaining ground after earlier losses. Greece is weighing on the 17-nation currency, limiting its gains and causing a certain amount of wariness.

Greece is looking to raise funds this week. The embattled country is on the verge of defaulting on 5 billion euros of debt. Unfortunately, there are projections that a treasury bill auction to be held by Greece on Tuesday will only raise 3.5 billion euros.

Even though the Greek parliament voted last week to implement new austerity measures, European Union officials still haven’t said whether the country will receive another bailout payment. There is a lot of uncertainty surrounding the Greek situation right now, which makes it rather surprising that the euro is managing to eke out some gains this morning — particularly after seeing some losses earlier.

For now, though, euro is gaining against the greenback. The 17-nation currency is heading a little bit higher, receiving some support from risk appetite, as well as higher gold prices. There are still concerns, however, that Greece will hold the euro back.

At 14:04 GMT EUR/USD up to 1.2721  from the open at 1.2712. EUR/GBP is also higher, up to 0.8013 from the open at 0.7993. EUR/JPY is a little lower, though, down to 100.9770 from the open at 101.0550.

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