Euro at 7-year lows vs pound, as concerns over Greece compromise persist
On Wednesday the euro plunged to seven-year lows against its UK counterpart, amid mounting concerns over whether Greece will reach a compromise deal with creditors to extend its bailout program. The euro held steady against the U.S. dollar.
EUR/USD hit 1.1289 during European afternoon trade, the session low; the pair subsequently consolidated at 1.1312. The pair was likely to find support at 1.1223, the low of January 27 and resistance at 1.1488, the high of February 6.
The common currency dropped to seven-year lows against the pound sterling, with EUR/GBP sliding 0.36% to 0.7395.
Markets remained jittery as Greece was to hold crunch talks with European Union officials later on Wednesday.
Greece’s current bailout is due to expire on February 28. The new Greek authorities do not want it extended, driving fears that a conflict with international creditors could trigger the country’s exit from the euro zone.
Athens was expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace 30% of its massive bailout deal.
On Tuesday evening Prime Minister Alexis Tsipras's government won a confidence vote and reiterated that he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension.
