"In the latest bid to keep the 17-nation euro intact, the ministers cut the rates on bailout loans, suspended interest payments for a decade, gave Greece more time to repay and engineered a Greek bond buyback. The country was also cleared to receive a 34.4 billion-euro (44.7 billion USD) loan installment in December. The euro rose to a three-week high on the agreement."
While this was certainly a welcome step, this event was pretty fully anticipated already. From the same story.
"The euro was 0.2 percent higher against the dollar after announcement of the deal on Greece, trading at 1.2992 at 8:25 a.m. in Brussels after reaching 1.3009 earlier. Futures on the Euro Stoxx 50 Index gained 0.7 percent, while contracts on the Standard & Poor’s 500 Index rose 0.2 percent. The MSCI Asia Pacific Index (MXAP) of shares advanced 0.4 percent."
That's the best we can do? The Euro has been saved and it rejoices by moving all of 0.2% ?
Over the last month EUR has varied between 1.27 and 1.30. Less than a 3% range.
Granted we are on the highs right now. However over the last year EUR has varied between about 1.20 and 1.35 so we are sitting squarely in the middle of the range.
Perhaps there will be a more significant follow though later - but this latest event certainly brings into question the hypothesis that what was holding back the world economy was uncertainty about the future of the Euro.
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