The shared currency moved up versus the US
dollar following the decision of EU finance ministers to stretch out the financial
bailout for Greece by another four months.
Athens can now bargain for a much longer
debt reprieve with its creditors.
This pact also eliminates the immediate possibility
that Greece will be eased out of the European bloc.
Many FOREX analysts see this as an upside
for markets in the euro region. The euro rallied reached a high of $1.1428 and settled
at $1.1402. Prior to this meeting, it fell to $1.1287.
Meanwhile, Germany said it wants
considerable improvements in terms of reforms by Greece before it agrees to
extension of the funding.
Some investors are apprehensive that
renegotiation of financial aid for Greece can affect other euro nations that require
similar rescue packages.
They believe that it will expose the euro zone to numerous scenarios that will
generate more economic volatility.
At the same time, traders will monitor
closely the testimony of US Central Bank chair Janet Yellen before the Senate
Banking Committee on Tuesday regarding indications of when the Fed will
increase interest rates.
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