EUR Weakens on Greek Sovereign Debt Worries

By IBTimes Staff Reporter | January 13 2010 3:06 AM

The EUR had mixed results against the major currencies yesterday after Greek sovereign debt once again looms over the EUR. Comments made yesterday by the Greek Finance Minister helped to support the EUR. In a statement, the Finance Minister said Greece had emptied all the skeletons out from its closet and is in the midst of a program to clean up its financial situation, and cut its national deficit.

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The threat of default by Greece on its sovereign debt would create havoc in the Euro-Zone as EU banking officials have stated the European Central Bank (ECB) would not bail out Greece and help the struggling member nation to meet its debt payments.

Yesterday's trading had the EUR trading lower against both the GBP and the yen, with the EUR/GBP ending the day at 0.8960, after opening trading at the 0.9012 level.

Traders looking at the European currencies today will want to follow the release of the Manufacturing Production monthly numbers from Britain. This economic indicator is a key to identifying the health of the British economy. Recently this economic data has proven to be difficult for market economists to predict as the British economy attempts to stabilize after emerging from an economic recession. Traders should eye this data piece when entering into the market today.