It was a good week for the euro against sterling and the US dollar, rallying by over 1% to fresh one-and-a-half week highs against the US dollar on Friday. Progression on the Greek debt front boosted the demand for the single currency as it continued to strengthen against the majority of the main currencies after the Eurogroup described Greece’s latest proposals aimed at securing a vital bailout as ‘thorough’. This was exactly what the European finance ministers were looking for.
Detailed discussions have taken place over the weekend and are continuing this morning and have involved both the leaders and finance ministers of the Eurozone member countries. I think to describe them as tough would be an understatement but progress has been made and it appears that agreement, subject to parliamentary votes, is getting ever closer. The deadline for sign off by the Greek parliament is apparently Wednesday which wouldn’t be a day too soon given the parlous state of the Greek banks which are apparently days away from collapsing. So hopefully, we are in the final throes of this stage of the debt crisis which will allow the Greeks to get on with living their life.