Increased optimism for two political situations – one in Europe, the other in the U.S. – benefited the value of the common currency of the European Union on Monday, Reuters reports.
Prospects of Greece winning emergency aid funding on Tuesday propelled the monetary unit while a brighter outlook for negotiations between leaders in the U.S. regarding the fiscal cliff also proved to be beneficial to the currency. Euro zone finance ministers are prepared to convene on Tuesday in Brussels and grant the release of 44 billion euros to the Aegean nation, which would occur by December 5.
"The market was still nervous ahead of the euro-group summit," senior currency strategist Mike Moran with Standard Chartered in New York told Bloomberg on Monday. "It was particularly fearful that we weren't going to get any firm resolutions around when Greece would get its next tranche. Any news suggesting that Greece will get its next payment represents good news."
Another factor that would be beneficial to the euro is Spain advancing with its request for bailout aid, which is widely anticipated.
In order for Greece to receive the bailout aid, it must meet conditions and circumstances, Reuters reports.
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