Euro pares advance as Greece-creditors impasse resumes

Greek flag flies behind a statue to European unity outside the EU Parliament in BrusselsThe euro snapped some its earlier gains versus the U.S. dollar on Tuesday on renewed worries as the impasse between Greece and its creditors resumes.

An informal meeting between German, France and Greece on Wednesday is likely not occur, as the Greek proposal sent on Tuesday failed to meet creditor’s demands.

Angela Merkel’s CDU party ally, Michael Fuchs, has raised doubts about reaching a deal any soon after he described Athens’ proposal as unserious.

“So far, there has been no comment or response to the Greek representation in Brussels,” a government official in Athens said, according to Reuters.

Despite the deadlock situation, Greece managed to auction nearly €3 billion of short-term debt.

The single currency rose to a high of 1.1384 earlier today versus the U.S. dollar on bonds sell off, which sent the 10-year German bond yield to more than 1.00 percent for the first time since September.

Spanish, Italian and Irish bond yields with 10-year maturity also saw a rise ahead of debt sales on Thursday.

It is worthwhile to mention that the ECB said the previous week it would not add further stimulus despite the rise on European bond yields.

On the other hand, the dollar remained under pressure amid worries from U.S. officials regarding the negative effects of the strong dollar on the world’s biggest economy.

Euro snaps ealrier gains fxcomment

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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