Euro Poised to Gain But Greece Is the Wild Card

Wall Street Journal
July 3, 2011

The euro is poised to rise further as investors reload on riskier bets, but their enthusiasm could be curbed by the chance of Greece's crisis reigniting.

So long as European leaders prevent Greece from defaulting, something most observers expect in the short term, traders will shift their attention to worries about the global economy. Stronger-than-expected readings in coming days could encourage investors to buy the higher-risk euro and currencies tied to growth.

"The whole risk-appetite story is again front and center," said Alan Ruskin, currency strategist at Deutsche Bank AG in New York. "We've dodged the bullet—the missile, really," he said, referring to Greece's woes.

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