On Monday the euro zone currency declined against most major rivals in early European deals. Sentiment for the common currency quickly turned negative, as traders evaluated the small print of the upcoming deal. Greece still has to come up with a set of reforms that its EU creditors should accept.
The euro was trading at 135.10 against the yen, 1.1335 against greenback and 0.7367 versus the pound, off early highs of 135.66, 1.1395 and 0.7404, respectively.
The euro edged down to 1.4239 against the loonie and 1.5093 against the kiwi, from an early high of 1.4300 and a 4-day high of 1.5152, respectively.
The euro may find downside target around 1.10 against the greenback, 134.00 against the yen, 0.73 against the pound, 1.50 against the kiwi and 1.40 against the loonie, says Alliance News.
The Greek deal, if accepted, will only extend the existing bailout by four months, after which renegotiations will have to take place again. It’s also a major U-turn for a Greek Syriza government that won elections on the promise that it would not sign off on an extension of the bailout package nor accept fiscal reforms imposed by the EU. If this deal goes ahead, it has done both.
