Even though eurozone leaders have agreed to a Greek deal, problems remain in the wider eurozone. With focus returning to the long-term for the entire currency region, the euro is heading lower right now.
European leaders came to a deal, reducing Greek debt by 40 billion euros, and making it possible for the embattled country to receive needed loans to keep it afloat. The news gave the euro a bit of a boost in earlier trading, but much of the enthusiasm is gone as attention turns to the wider eurozone.
Even this solution helps Greece for now, there are still worries about the long-term. On top of that, there are concerns about what could be next for the eurozone as a whole. The region is officially in a recession, and there are other countries, like Spain and Portugal, that are still struggling with their own budget problems. The fix with Greece is just a short-term solution, and the entire eurozone has wider issues that need to be resolved.
Also not helping the euro is the sudden strength being found by the US dollar as Richard Fisher, President of the Dallas Fed, raises concerns about quantitative easing. It could be that the greenback doesn’t see as much in the future.
At 13:59 GMT EUR/USD is down to 1.2948 from the open at 1.2973. EUR/GBP is down to 0.8070 from the open at 0.8094. EUR/JPY is down to 106.4435 from the open at 106.4805.
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