The euro's climbs from its lowest rate in three-plus months against the world's reserve currency were driven by one Greek political leader stating four political parties agreed to keep the hobbled nation among the euro bloc as long as they are part of the next government. Elections last weekend in the nation that has received two tranches of bailout aid since June 2010 were inconclusive.
"It is a combination of some bearish positions being squeezed and speculation that a government in Greece could be formed that is driving the euro higher," G-10 currency strategist Ankita Dudani with RBS Global Banking told Reuters. "This is a small move and can easily be reversed during the course of the day."
Conjecture about Greece' future include everything from additional bailout aid as soon as next month to pushing the Aegean nation out of the euro zone. Whether the nation abides by austerity measures of the first two bailouts will fall under scrutiny.
Reuters reports worries about Spain's fiscal circumstances are growing stronger, particularly ones about its banks.