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Forex - Euro jumps higher on reports of Greece deal

Published 07/13/2015, 03:09 AM
© Reuters.  Euro moves higher as new Greece deal reached after marathon overnight talks
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Investing.com - The euro moved higher Monday as marathon overnight negotiations on a bailout deal for Greece hammered out an agreement to prevent a financial collapse and an exit from the euro area.

EUR/USD hit highs of 1.1197 and was last at 1.1178, up 0.17% for the day.

The euro was boosted after European officials said an agreement on a new aid program for Greece had been reached.

The details of the agreement were to be announced a press conference later in the day.

Greece accepted a series of draconian measures demanded by its creditors in exchange for a third bailout deal.

The Greek parliament must approve a package of reforms on Monday and then pass several pieces of legislation by Wednesday, including on pensions reform and a new sales tax regime, before the euro zone will agree to negotiate a new three-year rescue package.

Greece had initially resisted two key demands from creditors on having the International Monetary Fund involved in the new bailout, and on a German demand for Greece to set aside €50 billion of state assets to act as collateral for fresh loans.

The euro also edged higher against the yen, with EUR/JPY touching highs of 137.79, before pulling back to 136.99.

The dollar also hit session highs against the safe haven yen, with USD/JPY rising to 123.09.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.02, little changed for the day.

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