Euro Recovered its Value on Asian Trading

The Euro managed to recover its value in Asian trading. This happened after the governor of the People’s Bank of China extended his support to Europe. He stated that China’s holdings on the single currency will be increased. This pushed up Euro’s value to $1.3191.

In response to Greece’s debt crisis which is affecting the Euro, analysts re-iterated the importance of European authorities coming up with an appropriate solution fast. Europe doesn’t have the time to think about implementation risks. According to the currency strategist of HSBC London, Daragh Maher, Europe needs to make sure that Greece gets its bailout money on time.

Meeting for Greek Bailout Rescheduled

In the Greek currency market, no significant developments were seen as traders had conflicting opinions regarding the unstable financial market of the country. On Tuesday, a meeting of European ministers was planned to be held to sign off a fresh Greek bailout. However, the meeting was cancelled due to various reasons.

Jean-Claude Juncker, the president of Eurogroup stated that the meeting had to be cancelled as Greece showed a lack of commitment towards implementing cost-saving plans within the country. The meeting has been rescheduled again and it will take place through teleconferencing.

France and Germany Record Good Market Growth

The economic growth of both France and Germany has been better than expected. However, traders could not be happy with the results. Data confirms that Netherlands and Germany went into a technical recession. The German market fell by 0.2% according to the last quarter’s results of 2011. In the French economy, 0.2% growth was seen in the last quarter.

The entire economy of the euro-zone fell by 0.3% in the past quarter. However, it was expected to drop down by 0.4%. Sterling’s economic growth had been quite steady despite its high unemployment rate and less than expected price growth. Forecasts of The Monetary Policy Committee are quite positive. Growth is expected to increase by 3% by next year end. An economist of Capital Economics, Vicky Redwood stated that in case growth rate is slower than expected, there is a possibility that QE will be extended.