You are here


You are here

EURUSD up on Greek loan


Feb 19 2015, 9.58am GMT


EURUSD floated up at market opening then fell 0.5% on additional €3.3bn ECB loan to Greek Banks.

As depositors start to retrieve money from Greek banks so the ECB pump euros into the institutes to give them the ability to meet debt requirements and to lend. The European Central Bank, which is waiting for Greece to decide on adequate rescue loans – decision date is Friday – agreed to raise the ELA (Emergency Liquidity Assistance) to keep the banks fluid. This is in contrast to the request from Greece for €10bn ELA.

Markets seemed to be confident that European financial leaders will come to an agreement, either on additional funding or an extension on Greece’s loan repayment. EURUSD stayed strong from Wednesday’s rally, seeing the euro up nearly 1% against the dollar, but the fall came soon after down 0.5% within an hour.

The ECB is sticking by its assertion that Greece needs to meet its bailout requirements. Greece is adamant that it will renegotiate the deal without the austerity measures in place and with a six month extension for the 28 February deadline on repayment of its current loan.

Reported on ZDF, the German public-service television broadcaster, on Tuesday, German Finance Minister Wolfgang Schaeuble said, “It's not about extending a credit programme but about whether this bailout programme will be fulfilled, yes or no.” He added, “I don't have any new information, but there is no loan agreement, it's an assistance programme. And in this seemingly unimportant detail lies the key: Greece would like to receive credit, but not fulfil the conditions to allow Greece to recover economically,” referring to austerity measures executed under the Troika deal.

Greek finance minister Varoufakis is due to submit a request for the six month extension today, Thursday. This will mark the direction in which talks will progress and how the euro will be affected.

MT4 chart: EURUSD

Trade forex CFDs on STOCK.com with full training given to all clients

Forex Block Actions

Trading Platforms


Through a simple native App download, be ready to log on to the powerful, intuitive MT4 platform and trade multiple assets on your desktop or through mobile

More on MetaTrader


Online access - anytime, anywhere - to your secure STOCK.com account, through desktop, tablet and mobile interfaces with no download necessary

More on WebTrader

Trading in CFDs involves significant risk to your invested capital