On news that a conditional loan extension was on the verge of having been reached in Greece, the Swiss Franc dipped toward a 5-week trough as investors’ flight to safety deteriorated. Despite the deal which was worked out late Friday night, investors remain uncertain that Greece’s bailout will be finalized, thus the Euro remains under some pressure against its major peers. On Friday, the Eurozone’s ministers agreed to provide Greece with four additional months to their rescue package in order to get their finances in order. Analysts say that that at least eliminates the immediate risk of Greece’s withdrawal from the Eurozone but it does not solve the problem of how to keep the government solvent in the long term.
As reported at 8:33 am (GMT) in London, the EUR/USD was trading at $1.1345, a loss of 0.3% after last Friday’s rise to $1.1430. The EUR/JPY also edged lower to 135.20 Yen. The EUR/CHF traded at 1.07595 Swiss Francs, a gain of 0.7%, off last Friday’s peak of 1.08115 Swiss Francs. The USD/CHF was also 0.9% higher at 0.94765 Swiss Francs.
Germany’s IFO Disappoints
Analysts had been hopeful that Germany’s IFO survey would provide some support for the Euro, however the actual results which were released a short while ago were a mixed bag with the IFO Current Assessment slipping in February to 111.3, Business Climate edging marginally higher to 106.8 from 106.7 and Expectations edging higher to 102.5 from 102.0 in January; all outcomes were lower than analysts’ expectations, however. With the news, the EUR/USD dropped to $113.07.