The
euro rose sharply after the Greek Parliament approved next phase in bailout reforms required by creditors.
The
single currency rose by 0.71% to 1.1007 dollars, passing over 1.1 EUR / USD for the first time in weeks. EUR also rose
against
the pound, the yen and the Swiss franc.
This morning the Greek
Parliament approved the second package of measures, fulfilling the last
condition of creditors to start negotiations for a third bailout package for
the country. The draft law affects the operation of banks, property of debtors
and the judicial sector.
The new approach towards
Greece is that first country accepts the reforms and then gets the money and
this seems to enjoy the approval of investors.
However, the increase of the
euro will be for a short. The risk created by the Greek crisis is rather
speculative. For the foreign exchange markets interest spreads are of
significant importance. Currently the interest rates in the US and the euro
zone are on zero levels. However, this should change this year, as there are
strong indications that the Fed is ready to start tightening its monetary
policy in September.
No comments:
Post a Comment