Euro Advances as Greece Concerns Considered Excessive

The European single currency gained considerably versus the U.S. dollar and the Japanese yen as traders considered the lack of attractiveness for the euro too strong as Greece’s budget crisis is not so serious in terms of practical consequences for the European Union’s economy.

The euro posted a significant rebound versus important currencies in Europe like the Swiss franc and the Great Britain pound as Greece is ready to implement measures necessary to tighten its budget deficit according to EU officials, easing concerns regarding the fiscal crisis in the southern European nation and decreasing the relevance of these issues on the euro’s charts. Greek officials’ statements recognized the difficult situation that the country is facing, but they were also confident supporting a theory that if measures will be efficiently imposed to bring the budget deficit to the EU’s target, the country will recover its financial health in the medium-term.

The shock caused by the Greek budget deficit is now fading away, allowing the euro to rebound to some extent in forex markets, but the reality in the Eurozone is that several countries face serious problems in their public accounts, and this will certainly weigh on the currency outlook for a longer period.

EUR/USD climbed to 1.3745 as of 16:49 GMT from a previous rate of 1.3604. EUR/GBP traded at 0.8734 from 0.8686.

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