The pressures on the euro are mounting once again with the prevailing deadlock among the EU block's finance chiefs over the bailout for Greece and mainly the extent of private sector's involvement.
In an emergency session of finance ministers in Brussels yesterday, the euro-area finance chiefs failed to reach an agreement on the role of private investors in the new Greek bailout without triggering a default.
The ministers failed to reconcile their differences with the opposition still German-led asking for a greater role of the private sector which is opposed by the European Central Bank and so far by France which is a good sign for now.
With the uncertainty still surrounding the new package, the deadlock might extend beyond the 23-24 EU Summit when the package was expected to be passed by leaders, as now speculation mount that the package might be delayed to July.
Focus will turn on the area's two arch nations, Germany and France which so far standing at two opposing camps opposed to their previous reconciled stance on bailout issues. Eyes are now on a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to reconcile the differences at their Friday June 17 meeting in Berlin, and hopes are on France to ease the German stance on private sector involvement.
The euro is surrendering the gains to the mounting pressures and trading to the downside versus its major peers. The EUR/USD moved to the downside and currently at the intraday low around $1.4370 from earlier highs of $1.4450. The currency also declined versus swissy and now trading around 1.2189 from the previous high of 1.2244 and also weaker versus sterling at 0.8795 from earlier 0.8824; trading is also weak for the euro versus the Japanese yen as the pair is moving around 115.72 from earlier highs of 116.45.