EUR/USD: Euro Back Above $1.09 after US Jobless Claims Report & Greece
The euro failed to stage a major rebound on the prospects of a deal between Greece and its creditors, and declined again as the US currency regained a stronger footing.
The 19-nation bloc currency fell 0.14% and traded at $1.0886 against the US dollar, erasing previous mild gains that resulted from positive news about a potential debt deal.
"We are in the home stretch, close to the final agreement," Greek Prime Minister Tsipras had stated on Wednesday.
A positive tone was also struck by Greek Deputy Foreign Minister Euclid Tsakalotos, who is also in charge of political negotiations with the lenders, saying that the talks already included the conditions for further aid after the completion of the current rescue program.
"Almost by itself, the two negotiation processes have now been combined," Tsakalotos said, adding that the final decision on further aid would come in the next two weeks.
However, some analysts say a potential agreement will have only a temporary impact on the common shared currency.
"If an agreement is reached to provide short-term financing to Greece as we continue to expect, it is likely to offer only limited and temporary support for the euro," analysts from the Bank of Tokyo-Mitsubishi UFJ argued.
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