The euro has gained strength against the US dollar today on positive news from Greece that it is introducing changes to help reduce its deficit.
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The Euro has gained strength today after yesterday’s pledge by French President Nicolas Sarkozy that the eurozone countries would help Greece to ease its high levels of debt.
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On hopes that an EU support deal for Greece may be closer, the euro retained value against the US currency today, while sterling lost over 1 per cent in value.
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New European Unions statistics show that prices in the eurozone region rose by 1 per cent in January on a year-on-year basis, up only slightly on the 0.9 per cent inflation rate measured in December.
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Sterling stayed strong against the single European currency this morning as concerns over Greece’s future remained stronger than concerns over the UK economy.
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The cost of insuring Greece and Spain’s debt against default fell today in light of a lack of any new bad news in the two struggling economies. As a result of this, the euro strengthened against the US dollar.
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