Though the Euro clawed higher, it remains vulnerable as fears of a Greek exit grow on the backs of news that some Greek banks are experiencing a funding crisis. Analysts say that the EUR/USD will remain near to a 4-month low, and could trend lower as additional news emerges from the Euro area fuels existing worries.
As reported at 11:44 a.m. (JST) in Tokyo, the Euro was trading against the greenback at $1.2740, a 0.2% gain on the day, but not too far from the 1.2681 low struck yesterday. The EUR/USD has lost 4.1% so far this month, and has several times come close to hitting the year’s low of 1.2624. As one analyst puts it, even if the Euro gets some respite it won’t change the fundamentals; markets will still be waiting on the Greek outcome, but in the meantime it’s a bearish environment.
Commodity linked currencies were also feeling the pressure from the Greek fallout; the Australian dollar has finally managed to eke out more than a few pips gain and was most recently trading against the greenback at 0.9952, moving further off the 5-month low of $0.97870 that was struck on Wednesday. The NZD/USD pair was trading at 0.7673, slightly off the day’s low of 0.7656.