Euro Uncertainty

Financial markets have responded negatively to the unfolding drama surrounding the Greek bailout, with equities and the Euro starting November under strong selling pressure.

EURGBP fell from last week’s high of 0.8830(GBPEUR 1.1325) to a low of 0.8548 (1.16986) yesterday and is currently trading around 0.8611 (1.1613).

Against the US Dollar the Euro fell from last week’s high of EURUSD 1.4247 to 1.3608 yesterday, again the Euro has pared some of its losses and EURUSD currently trades at 1.3783.

The Greek cabinet has endorsed Greek Prime Minister Papandreau’s controversial plan to hold a referendum on the EU debt rescue package and the market will now await the outcome of today’s talks between Papandreau and his French and German counterparts President Sarkozy and Chancellor Merkel ahead of Thursday and Friday’s G20 summit and Thursday’s European Central Bank interest rate decision.

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11:30 02/11/11