Euro Rebounds on Greek Crisis Comments, U.S. Home Sales

The euro had the sharpest gains today this week as speculations that Greece will be bailed out by public lenders associated with worse than expected real state data in the U.S. were supportive for a corrective movement on the euro’s charts.

The European single currency is going to end this week with one of the best performances since the beginning of 2010 as German officials mentioned that Greece may be helped financially by a public EU institution, allowing the euro to gain on grounds that the budget crisis in the southern European nation is near to an end. The euro was also helped by a decline in attractiveness for assets in the U.S., as the market sentiment fell significantly after an existing home sales report that brought figures much below forecasts was released, making the greenback one of the biggest lowers today in forex markets.

The comments on an eventual bailout for Greece were a breather for the euro, and the impact of U.S. poor data allowed this rally to be extended according to analysts. In practical terms, the situation in the U.S. is still far better than in Europe.

EUR/USD traded at 1.3607 as of 18:06 GMT from a previous intraday rate of 1.3531.

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