Euro firmer in forex trading, Greece could weigh once more

The euro strengthened in foreign exchange trading overnight as investors readjusted record short positions on the single currency against the dollar.

Meanwhile, the greenback also lost ground against the yen and the pound, with forex hedging strategists deciding that the latter's slump was out of line with fundamentals.
But while the euro continued to climb this morning (March 3rd), there is possibility that the market may grow jittery as the full extent of the challenges ahead of Greece become clear as it attempts to rein in its debts become clear.

Speaking to Bloomberg on condition of anonymity, an official familiar with the matter claimed that the country's prime minister George Papandreou is finding new holes in the budget every day and is planning swathing cuts to comply with EU demands.

"We need the support of our partners. To provide it they must convince their citizens, from whom they are also asking for sacrifices, that Greece is doing what must be done," he told his fellow Pasok party-members at a conference in Athens.