Forex Trading news – Rumours of Greece leaving Euro hurts the single currency further

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Forex News – USD pulls off from 3 year low as Euro closes in on recent highsThe Greek government denied rumours released earlier that it was considering leaving the Euro “bloc” and that was what Eurozone finance ministers were discussing in their meeting on Friday.

These headlines hurt the Euro even further, as the currency was already suffering from huge losses today especially against the greenback, which was boosted by positive US employment data.

Geoffrey Yu, senior currency strategist at UBS in Stamford, Connecticut said “Greece leaving the euro zone could cause a cascade of problems, especially for the banking sector and particularly if the European Union allow Greece to unilaterally default on its loans. That would need to happen if Greece wants to leave the euro zone,” he added.

The rumours caused concerns of the European debt crisis to resurge, erasing gains in U.S. stocks, which had jumped more than 1.0 percent after the U.S. Labor Department reported a creation of 244,000 jobs in April, which was the most in 11 months and far more predicted.

EURUSD plummeted to 1.4314 two hours before the New York close, and rebounded briefly and has been volatile since then. It is currently at 1.4339 at time of writing at 20:45GMT.