LONDON (Reuters) – The euro was underpinned by hopes a way would be found to push through a second bailout deal for Greece, though poor results from some top European firms on Tuesday rekindled unease about the region’s debt crisis, sending shares lower.
Greece’s prime minister and the leaders of the country’s main political parties are set to resume talks today on new austerity measures demanded by the EU in return for a second bailout. The deal needs to be approved by February 15 if the money is to be available in time to meet a March 20 bond redemption.
“I think we are going to hear some news of an agreement. It may not be today, it may not be tomorrow, but the February 15 deadline is absolutely crucial,” said Peter Westaway, chief economist, Europe, for Vanguard Asset Management.
In early European trade the euro was virtually unchanged at $1.3127, easing back from initial gains of 0.1 percent and up from the an overnight low of $1.3026 in Asia.
“The euro is performing relatively well given the deadlines for Greece keep being extended. This suggests there’s more risks of a move to the topside should a deal be agreed,” said Adrian Schmidt, currency
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