The European single currency rose Wednesday after earlier falling to a session low versus the U.S dollar as results from a Greek Treasury bill auction showed the market still required a high premium to hold Greek assets. The single currency was trading at $1.3600, up 0.1% on the day and recovering from a session low of $1.3556.
On Monday, the EUR climbed to a near 1 month high of $1.3691 after Euro-Zone finance ministers agreed on a financial aid package for Greece, before paring gains as investors sought clarification about the plan. However, analysts said that although the EUR is now undergoing a rally the financial package does not change the medium-term outlook, which is that the European economy is likely to under perform other developed economies. Thus, the downtrend for the EUR/USD cross looks set to continue.