Greek Politics Threaten to Tear Down Stronger Euro - iShares Inc iShares MSCI Italy ETF (ARCA:EWI)

The euro climbed to a four month high on Tuesday after data showed that German investor sentiment rose for the second month in a row in June. The common currency has remained strong at $1.33 ahead of the US Federal Reserve meeting at which US central bankers are expected to determine whether or not to continue with their quantitative easing plan. The German ZEW survey showed that the nation's economic sentiment increased from 36.4 in May to 38.5 in June. According to

Reuters , the figure beat out original forecasts of just 38.1. The report was welcome news to eurozone policy makers as it fueled speculation that the region could see an economic recovery at the end of 2013. The US Federal Reserve is set to begin a two day policy meeting on Tuesday which investors will be watching closely for any clues about the nation's stimulus spending. After Fed Chairman Ben Bernanke indicated that the bank was planning to cut back once the nation's economic indicators showed steady improvement, investors poured over US data to anticipate the bank's pull back. Now, as the Fed meeting gets underway, analysts are not expecting to see any large swings until the meeting's close. However a bit of tension in the eurozone could put pressure on the euro as problems with Greek politics threaten to tear down the nation's forward progress. After Greek Prime Minister Antonis Samaras fired a group of civil servants, his already fragile coalition government turned on him by saying the decision was driven by his desire to placate Greece's creditors. This decision was the first real cut to Greece's bloated public sector, something the nation is required to reform in order to meet its bailout conditions, and it has many worried that the nation won't be able to make the necessary changes without tearing its government apart.

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