Comments by Fmr. Greek PM Papademos Smash EUR, Equities Rollover

May 22, 2012 4:29 PM EDT
The exchange rate of the EUR/USD lost 1 percent after Lucas Papademos, former Prime Minister in Greece, made comments to Dow Jones that suggested Greece has already made preparations for a withdraw from the EU. Markets have not fully priced in the effects of a Greek exit, and many including Papademos believe it would be catastrophic.

Equity markets rolled over following Papademos's comments. The market had taken a slightly positive tone in early trading as traders look forward to an EU summit in the Brussels on Wednesday. Markets are also very much looking forward to results from the Greek elections on June 17th.

The spot price of EUR/USD is $1.2680. The EUR/USD can be traded using the ETF (NYSE: FXE).

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