The ongoing Greek financial crisis continues to have a major impact on everything, from the daily turmoil of its citizen’s lives to the foreign exchange market. Whether the country remains in the Euro long term still remains to be seen with numerous analysis, opinions and speculation being thrown around.
Whatever the final outcome, it is sure to have a big impact on many other currencies around the world. Even though a third bailout for Greece has now been agreed there is still a lot of uncertainty which will help and hinder certain global currencies.
Fluctuating Euro
The constant threat of a Greek exit from the Eurozone has unsurprisingly not been the best thing for strengthening the Euro. Instead it has fluctuated based on the constant headlines, from a deal being imminent to an exit being about to occur.
The lack of clarity or ability to accurately speculate about what will happen has put many businesses and individuals off exchanging for the Euro. While the strength of the majority of other nations mean the Euro should be alright in the long run, many would rather not take their chances and exchange them for another currency.
Positive US Dollar Movement
The weakening of the Euro has seen the US Dollar continue to rise against all the other major currencies. As the sceptical look to remove their backing of the Euro many are exchanging for the US Dollar as a more solid bet.
A Greek exit from the Euro will still have an effect on the US Dollar though, and it may not be positive. While it is likely to strengthen in such an event there are other currencies which could also benefit. The US also does a huge amount of business with Europe which will almost certainly hit it hard too.
Safe Option Yen
In times of economic crisis the Japanese Yen has often been the safe go to currency for many. This has seen it strengthen as the uncertainty surrounding a Greek exit continued. However, now that a deal seems almost secure there is plenty of volatility for the Yen as it will likely start to weaken back to its original position.
Whatever happens, the Yen is bound to get caught up again until a fully secure deal is laid out and Greece’s future safe. It’s an exciting yet difficult time to get involved in the forex market but if you’re feeling brave then trading with ETX Capital will set you off on the right foot.
