The EUR traded sharply higher when the Asian markets opened Monday morning. However, at the close of New York trading, the euro was trading near its Friday closing price. The EUR/GBP was at 0.8600 from 0.8697. The EUR/JPY closed lower at 118.85 from 119.87.
The bailout package comes as a relief to the Greek fiscal crisis and should help to reduce the spread of further fiscal issues in other EU nations. But the measures taken by the European Central Banks is actually a loosening of monetary policy. As such, the EUR should continue to trade lower versus the major currencies. The EUR/JPY could fall to the 116.50 price level in the near term.