CANBERA (dpa-AFX) - The euro retreated from recent highs against most major currencies in the early European session on Monday despite the materialization of the much awaited Greece deal, which was made after overnight talks between Eurozone leaders in Brussels.
After more than 16 hours of deliberations in Brussels, eurozone leaders reached a 'compromise' on a bailout deal at the Euro summit.
Eurozone ministers gave Greece until Wednesday to pass new laws, including tax and pension reforms, to help avoid losing access to the common currency bloc.
European Council President Donald Tusk said that several national parliaments will have to approve the agreement, including the Greek parliament as the deal includes 'strict conditions.'
Tusk noted that Greece has to meet strict conditions under the new programme, which has to be approved by several national parliaments, including the Greek parliament. Once such approval is gained, negotiations can formally begin, he added in a press conference following the summit.
Traders await the European Central Bank's Emergency Liquidity Assistance decision, due later in the day.
The country's banking system is severely stressed and is largely dependent on emergency support from the European Central Bank. Greece faces a EUR 3.46 billion payment to the central bank on July 20.
In the Asian session, the euro held steady against its major rivals.
In the early European trading today, the euro fell to a 5-day low of 0.7122 against the pound, from an early high of 0.7200. The euro may test support near the 0.69 area.
Pulling away from an early 2-week high of 137.78 against the yen, the euro dropped to 136.39. On the downside, 132.00 is seen as the next support level for the euro.
Against the U.S., the Australia, the New Zealand and the Canadian dollars, the euro slipped to 1.1053, 1.4901, 1.6489 and 1.4079 from early highs of 1.1196, 1.4892, 1.6613 and 1.4210, respectively. If the euro extends its downtrend, it is likely to find support around 1.07 against the greenback, 1.43 against the aussie, 1.56 against the kiwi and 1.34 against the loonie.
Meanwhile, the euro advanced to 1.0512 against the Swiss franc, from an early low of 1.0441. The euro may now test resistance near the 1.07 region.
Looking ahead, U.S. Federal budget balance for June is set to be announced in the New York session.
Copyright RTT News/dpa-AFX
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