The EUR/USD came off a two-month high today, following fresh concerns that Greece could soon default on its debt. The pair spiked as high as 1.3322 yesterday, after Greece reached a deal on austerity measures late in the European session. Hopes that the country would soon reach a debt swap deal with its creditors were dashed today, after euro-zone finance ministers demanded additional spending cuts from Greece before approving a second bailout.
The EUR/USD has dropped close to 100 pips so far today, while the EUR/CHF has dropped as low as 1.2090. The news adversely affected other riskier currencies, including the Australian dollar, which has tumbled well over 100 pips against the greenback since the beginning of the day. Crude oil has once again dropped below the psychologically significant $100 a barrel, and is currently approaching the $98 level.
Turning to next week, traders will want to continue monitoring any announcements out of the euro-zone. In addition to Greece, Portugal is likely to soon require a bailout. Further negative news out of Europe may result in riskier currencies extending thier bearish trends.
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