The euro reaches a two-month high due to an agreement being reached on austerity measures by Greece’s political leaders

The euro reached a two-month high against the dollar and the yen after Greek political leaders said that they had reached an agreement on the austerity measures needed to obtain a bailout.

The 17-nation currency strengthened against all its major counterparts after the European Central Bank President Mario Draghi said surveys confirm “signs of stabilization” in the region and there was a sense of optimism in his voice.

Greek politicians have reached a deal allowing them to receive the next €130 billion bailout from the European Union and the International Monetary Fund. 

Sterling strengthened yesterday after the central bank said it will boost its bond-buying program by £50 billion. The central bank altered the maturity bands of its debt purchases, indicating that it will buy more securities that are maturing in three-to-seven years than in the previous round.

The Bank of England and the ECB decided to leave its bench mark interest rates unchanged at 0.5% for the UK and 1.0% for the Eurozone.

Looking ahead into the weekend, this has been an extremely busy period in the markets. Short term containment in the euro due to Greece’s second bailout may see GBP-EUR levels staying in the early 1.19’s.

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