Forex - EUR/USD drops as Greece misses target

Forexpros - The euro snapped a multi day winning streak against the U.S. dollar Friday, after Germany stated Greece is missing its debt cutting targets.
 
EUR/USD traded at a low of 1.3186 and hit a high of 1.3291 prior to trading lower 0.74% at 1.3200.
 
The pair was likely to find support at 1.3088, Wednesday’s low and technical resistance exists at 1.3433, the high of December 9.
 
Earlier, the single currencies rally was fuelled when Greek officials  reached an agreement on austerity measures needed to obtain a EUR130 billion bailout package.
 
The troika of the European Commission, the European Central Bank and the International Monetary Fund met in Brussels yesterday to determine if Greece has met its obligations to qualify for its second bailout package.
 
Things did not bode well for Greece at the troika meeting in Brussels, sending the euro sharply lower on the session.
 
German Finance Minister, Wolfgang Schaeuble stated that Greece is missing its debt cutting targets.
 
Schaeuble explained that two people who spoke on conditions of anonymity, who attended the Brussels meeting, stated that Greece’s austerity plan would leave its debt as high as 136% of gross domestic product by 2020.
 
The German Finance Ministry went on to state, “The Greek offer is not sufficient and they have to go away to come back with a revised plan.”

Greece is facing mounting opposition to the austerity measures needed to qualify for its second bailout package.
 
Greek Finance Minister Evangelo Venizelos responded to the pressure by saying that the parliamentary vote on the measures, set to begin this weekend, amounts to a ballot on euro membership.
 
Adding to the negativity, Fitch Ratings reiterated its opinion that Greece will default even if it obtains the bailout funds
 
Earlier, the United States saw a surprising decline in the number of first time unemployment claims last week. This solidifies hopes that the economic recovery is continuing in the world’s largest economy.
 
Last week, Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20.  The investment bank expects government budget controls to result in a region wide recession.
 
The euro was lower against the pound with EUR/GBP falling 0.46%.