The euro continued to climb higher during the European trading session after Greece agreed to new austerity measures ahead of a bailout package. This helped to raise investor confidence and spurred buying of the euro and selling of the dollar.

The EUR/USD rose to a high of 1.3327 after an opening price of 1.3252. The euro was also higher against the yen as the EUR/JPY rose to 125.79 after opening the day at 1.2453.

Greece agreed to budget cuts that would amount to $30 billion following a wage freeze of public workers along with cuts to public pensions. More austerity measures should be expected should Greece accept funds from the IMF.

As a bailout package is hashed out between Greece, the EU and the IMF, the euro could continue to appreciate. Positive comments came from both the EU and the IMF addressing the necessary size of the bailout package to soothe market worries. However, should German opposition parties succeed in delaying an approval of a bailout, the euro may fall towards its low for the week. The next major support for the EUR/USD rests at the 1.3080.