EUR/USD Remains Above 1.13 on Reports of Greek Progress

The euro advanced against the U.S. dollar late on Wednesday as conflicting reports emerged about progress between the European Union and Greece over a bailout deal due to expire at the end of the month.  Two official sources told Reuters that no deal has been reached, but that a common statement was being drafted that could leave it open for Greece to extend its current financing. A Greek official insisted there could be no extension of the deeply unpopular bailout.

Gains accrued to the euro after CNBC television, citing a source, reported an agreement was reached “in principle.”  The euro popped higher against the greenback, trading up to $1.1353 after the reports, from $1.2393. On the day, however, the euro added just 0.10 percent on the EBS trading platform EUR=EBS.

“All we know now is that the worst case scenario, which had a low probability in the market is even lower now. Any potential worst case scenario is at least delayed,” said Sebastian Galy, senior currency strategist at Societe Generale in New York.  Luxembourg’s finance minister, Pierre Gramegna, later said the Eurogroup agreed on a way forward with Greece and that discussions would continue in the coming days.


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