“Speculation about an endgame in Greece’s protracted crisis has flooded markets with euro exit scenarios this week, but investors reckon there’s still every chance that uncertainty will simply drag on for months,” Reuters reports.
The euro has tumbled to four-month lows and the U.S. dollar could be on the verge of a “massive breakout,” says Christopher Vecchio, currency analyst at DailyFX.
“As the Greek government failed to reach consensus and form a coalition government, the EURUSD has broken to fresh four-month lows at 1.2721, the pairs lowest such exchange rate since January 17,” he said in a note. “With the Merkel/Hollande press conference providing little support for the berated currency, the euro looks to be pressured lower … now that other periphery countries, mainly Ireland, Italy, Portugal, and Spain, have started to see their short-term funding costs rise.”
U.S. Dollar Index
