Euro slides as France moves to prevent Grexit

The euro drifted lower against the US dollar on Tuesday (July 7th), while European stocks were little changed near four-months low as all eyes were on Greece.

Last-ditch attempts to keep Greece in the eurozone were led by France, with Athens given a final chance to present a reform plan to creditors at a summit in Brussels.

The single currency shed around 0.75 per cent against the dollar as the EUR/USD pair dipped below the 1.10 handle to its lowest in a month.

Meanwhile, the euro traded up slightly against the pound but remains near a seven-year trough.

Sterling was also lower against the dollar, which was broadly higher as demand for the safe-haven greenback rose amid the turmoil in Elurope.

GBP/USD was down one per cent to below the 1.55 handle, the lowest for the cable in a month, as weak UK manufacturing figures weighed. USD/JPY was steady at the 122.5 mark, while the buck was up against the Swiss franc.

Australia’s dollar sank one per cent to fresh six-year lows, after the country’s central bank left rates on hold at a record-low two per cent.

The US dollar was also higher against its Canadian counterpart, the loonie, trading at three-month highs close to the 1.27 level.

Meanwhile, stocks in Europe were trading around four-month lows as investors nervously awaited events in Europe.

The FTSE 100 was down slightly, holding just above the 6,500 handle, while the DAX in Frankfurt was down 0.7 per cent at 10812.88. Earlier, Chinese stocks extended their losses despite measures to prop up the market.

The Athens bourse remains closed on Tuesday and Wednesday after the bank holiday was extended.