Greece Goes to the IMF

By IBTimes Staff Reporter | April 16 2010 8:28 AM

The euro fell sharply in yesterday's trading but recovered slightly following an announcement that Greek finance officials met with the International Monetary Fund on Monday. This brings the EU member nation one step closer towards receiving bailout funds. The financing may be needed as Greece is expected to raise only $4B in the private debt markets. The Greek finance ministry had hoped to raise up to $10B in dollar denominated bonds.

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Greek worries are continuing to pressure the euro as the EUR/USD fell to a low of 1.3520, from an opening day price of 1.3649. The pair closed at 1.3554. The EUR/JPY was also lower at 125.69 after opening the day at 127.49.

The euro could remain under pressure until funds are released to aid Greece. Worries also persist as other EU member nations struggle to get their finances in order. The nations of Portugal, Spain and Italy are of the highest concerns. We may expect the EUR/USD to continue to fall with a key support level at 1.3385.