The continuing debate regarding the Greece bailout persists in putting pressure on the EUR. Once announced that the Euro-Zone, in conjunction with the IMF, would work to save the ailing Greek economy, the EUR saw a major boost unlike any it has seen in months. Now, however, investors who bought into the EUR after this announcement are experiencing what appears to be buyers' remorse.
Uncertainty as to how this bailout will proceed is the underlying source of this remorse. Most investors are looking to a meeting of finance ministers from the European Union to see how this bailout will be implemented. Until matters are cleared up, it is doubtful whether the EUR can sustain its recent gains.
In other areas, China is hinting at slowing economic growth, which has many investors wary of Asian stocks. Poor first quarter results from such giants as Google are tamping down on investor confidence. And dovish statements about holding interest rates steady by the US Federal Reserve have all resulted in USD sell pressure. Today's joint Reuters and Univ. of Michigan (UoM) consumer confidence reports could help restore a small boost to the greenback before the trading day comes to an end. But a worse than forecast reading will likely only add to the Dollar's recent woes.