After yesterday’s struggles, the euro is finding some support to day on the currency market. Euro is making gains, despite the problems that continue to plague the eurozone.
Concerns about what happens next with Greece are still causing some trouble, limiting gains by the euro, but the 17-nation currency is moving higher today. Greek Prime Minister George Papandreou managed to get his cabinet to agree to a referendum on the eurozone bailout plan.
For now, Forex traders and others are simply focusing on other things. We won’t know what will happen for sure with the Greek referendum until it takes place, so there is a little optimism emerging.
Hopes right now are hanging on China, which is cash rich, and has expressed interest in supporting the eurozone in the past. Indeed, some eurozone leaders hope they can convince China to invest in the EFSF to help bolster efforts to stabilize countries shaky from sovereign debt worries. However, China is unlikely to be enthusiastic about the idea of Greece descends into a disorderly default.
For now, though, at 13:01 GMT, EUR/USD is higher at 1.3792, up from the open at 1.3698. EUR/GBP is higher, moving to 0.8614 from the open at 0.8589. EUR/JPY is up to 107.71 from the upen at 107.34.
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