The Euro edged close to a 2-week peak against the greenback during the Asian trading session on Tuesday, as risk appetite got a boost from optimistic investors expecting that the Greek government will receive its next bailout tranche soon. According to the E.U. policymakers, the disbursement will be approved for the €5 billion in loans though the payment won’t be made until early December and then only if the remaining conditions are satisfied.
As reported at 2:24 p.m. (JST) in Tokyo the EUR/USD pair is trading 0.13% higher at 1.2796, falling off the session high of a.2810. For the month of November, however, the pair is down 1.2% thus far, and analysts are doubtful that it will be able to hold onto recent gains without a struggle. Despite the good news for Greece there continues to be worries over the other obstacles to the Eurozone’s full economic recovery, namely Spain and Italy.
Spain has yet to apply for financial help from the Troika, and as the fourth largest economy in the Eurozone, there is a constant downward pressure on the currency. Analysts believe that if the Spanish government would put in an official request for assistance, the EUR/USD pair could rally even above $1.30 as the European Central Bank would then be able to buy Spanish debt which would lower Spain’s borrowing costs.
Euro Up on Greek Loan Approval
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.