The euro erased its yesterday’s gains against the US dollar and was flat today as Greece struggles to reach an agreement with creditors on a debt reduction. The currency fell versus the Japanese yen yesterday and continued to fall today.
The earlier discussion between Greece and its creditors ended in a stalemate. Some officials said that talks are progressing better this time, but investors are cautious to be overly optimistic about an outcome of the talks after the previous unfavorable result. The outcome of the discussion about credit swaps is very important for Greece and whole Europe.
Yesterday, the euro was rising and reached a monthly record versus the dollar and the yen as sentiment about Germany improved. GfK Consumer Climate increased from 5.7 to 5.9 in January, while Ifo Business Climate went from 107.3 in December to 108.3 this month.
EUR/USD traded near its opening level of 1.3106 as of 5:34 GMT today, while yesterday it reached 1.3183 — the highest rate since December 21. EUR/JPY was down from 101.50 to 100.93, while on the previous trading session it touched 102.20 — the price last seen in December 23.
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