EUR/USD Below 1.0950 on Greece Debt Concerns

The euro was on the defensive early on Monday after Greece missed a self-imposed Sunday deadline for reaching an agreement with its lenders to unlock aid, keeping alive fears of a debt default.  The euro eased 0.4 percent to $1.0954, retreating from Friday’s high of $1.1006. Against the yen, it slipped to 136.21 from 136.49.

“There are now just four more sleeps until Friday, whereupon Greece will meet or miss its deadline for a 300 million euros payment to the IMF,” said Ray Attrill, global co-head of FX strategy at National Australia Bank.  “Watch for headlines out of Europe this morning.”

Without a deal, Greece risks default or bankruptcy in weeks. Sources close to the talks said Greece and its European creditors agreed on the need to reach a cash-for-reforms deal quickly.  With the euro on the backfoot, the dollar index crept up to 97.008, lifting off from Friday’s low of 96.753. It was within reach of a five-week high of 97.775 set last Wednesday.


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