Vlad Demochko
At this point, the common European currency is weakening against the UD Dollar and other currencies. The major reason for the pressure is the uncertainty over the terms of providing financial aid to Spain and new worries about the destiny of Greece.
EURUSD is currently trading around $ 1,2927. However, currency pair managed to hit the 2-week high at 1,3072 on Friday.
Investors are worried about the situation in Greece and Spain . According to Adam Meyer, Chief Currency Strategist at Credit Agricole, the EURUSD exchange rate may reverse when Spain officially asks for financial support. This is expected to happen in late October. The expert is sure that the currency pair will be consolidating in a certain price range until then.
It should be noted that during the latest meeting in Luxembourg, the Euro Group concluded that Spain is still capable of doing without external support and is implementing structural reforms. At the same time, Greece is asking for a 2-year payoff delay, which may ease the debt burden and help the country to reduce the budget deficit.
Vlad Demochko
