Euro Falls After Confidence Of A Bailout Plan To Rescue Greece Fades (BCS)

The euro slipped today after initial confidence about a possible bailout plan by the European Union to rescue Greece faded away, according to a Wall Street Journal report.

The markets were expecting Germany to lead a possible bailout plan by the European Union to rescue Greece, which is struggling with a huge deficit, and to prevent the crisis from spreading to other troubled euro zone economies. This gave investors some confidence yesterday, and helped the euro. However, the optimism faded away today.

“Any package from EU countries will raise the usual concerns about moral hazard and, perhaps more pertinent in the short term, whether the internal adjustment conditions will be successfully enforced,” according to Adarsh Sinha, currency strategist with Barclays Capital (ADR) (NYSE: BCS).