Euro gains affected by failing Greek economy

Foreign exchange trading may be implicated after ongoing uncertainty over the strength of the euro.

Gains following a one-year low proved to be short-lived today (April 27th), something that has been attributed to the economic crisis in Greece, Reuters reported.

Robert Rennie, a Sydney-based chief currency strategist at Westpac, told the news provider that "the clock is ticking" on the situation in Greece, which he described as "very shaky indeed".

"Market positioning is such that any bounce is leading to some buying in the euro," he explained.

Greece's government is now hoping to secure an emergency monetary package from the International Monetary Fund.

Mr Rennie went on to say that if the euro breaks in value above the $1.34 (87p) threshold then its short-term future may start looking a little better.

This week the euro emerged from a year low $1.32 (86p) but failed to get any higher than $1.342 (87.44p).

Posted by Thomas Smith

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