2nd February 2012
The fact that talks regarding the proper management of Greek debt have run on so long has pulled down the European single currency in market trading today (February 2nd).
As of 09:32 GMT, the euro had lost 0.2 per cent of its value against the dollar to stand at $1.3133, down from a session high of $1.3197.
Ulrich Leuchtmann, head of FX research at Commerzbank, told Reuters: "The initial reaction [to a deal] will be very positive but afterwards we will have to look closely at the details. It's very tricky to set up such a deal."
He added that a breakout for the currency is only likely to occur should a satisfactory resolution to the Greece issue come about or if weak data is released by the US.
Earlier this week, positive manufacturing figures in Europe helped to push up the single currency against the greenback, while strong uptake for Portuguese debt also had a positive impact.
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