With Germany backing the latest bailout for Greece, the euro is heading higher today. There’s a lot to consider when it comes to the eurozone and the euro, and the latest bailout means that, for now, there will be no exit from the 19-nation currency union for Greece.
Questions about whether or not German politicians would approve the latest Greek bailout have been swirling for weeks now. Those questions have been answered as MPs have voted to support the latest round of funding for Greece. There are still some politicians that are upset about continuing to provide money to Greece, but it appears that, for now, the funding is underway.
Wolfgang Schäuble, Germany’s Finance Minister, says that he’s not sure that this will solve Greece’s problems, but that it should be tried anyway, to give euro a chance to weather this storm — and Greece a chance to enact true reform.
For now, the euro is gaining against its major counterparts on the news. While there is skepticism about how sustainable the current structure of the eurozone is, for now things are moving forward.
At 13:54 GMT EUR/USD is up to 1.1037 from the open at 1.1023. EUR/GBP is up to 0.7050 from the open at 0.7042. EUR/JPY is up to 137.3260 form the open at 137.1340.
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