Market Overview

Greece's Exit From the Euro is "On the Table"

Share:

Maria Damanaki, a European Union commissioner and a Greek, wrote on her personal website that "The scenario of removing Greece from the euro is now on the table."

She went further, stating that either Greece must come to terms with its lenders or return to the drachma. Greece used the drachma prior to the introduction of the euro currency.

This stands in contrast to the statements by Greece's Prime Minister George Papandreou who insisted that Greece would remain in the Euro Zone. Damanaki and Papandreou are both members of the ruling Socialist party.

An admission by a Greek government official that Greece was now entertaining the idea of abandoning the euro may be bearish for the European currency. The euro was down against the dollar on Wednesday.

Traders looking to play continued euro weakness might consider ProShares UltraShort Euro (NYSE: EUO). EUO attempts to return an inverse value corresponding to the strength of the euro and may do well if Greece does ultimately abandon the currency.

 

Related Articles (EUO)

View Comments and Join the Discussion!

Posted-In: Long Ideas News Short Ideas Currency ETFs Forex Global Trading Ideas ETFs Best of Benzinga