Pound Dragged Lower as EURGBP Spikes on Greek Bailout Chatter
The Euro surged against the British Pound in early trading, sending the UK unit sharply lower against most major currencies as the markets digested emerging details of a German-led bailout of the debt-ridden Greek economy. The Wall Street Journal features a story saying German and French officials are hashing out a plan to offer as much as 30 billion euros in aid, likely via the sale of Greek government debt to state-owned banks in the Euro Zone’s top-two economies. This reinforces a story that emerged from Bloomberg News late Friday that cited an anonymous source claiming that German state-owned bank KfW Group to buy up to 25 billion euros in Greek bonds to stave off a default should the troubled southern European country fail to set its own house in order. The Financial Times offered a bit more detail, saying a plan whereby the Berlin administration would offer guarantees on purchases of Greek bonds by major German banks started to take shape after a meeting between Deutsche Bank CEO Josef Ackermann and Greek Prime Minister George Papandreou.
For real time news and analysis, please visit http://forexstream.dailyfx.com
To receive future articles by email, please contact Ilya at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.