Forex: Euro Rebound Could Be Short-Lived, Sterling At Risk

(Inside Futures)- Despite the slew of dismal data coming out of Europe, the EUR/USD held its ground throughout the overnight trade, but the rebound in the single-currency could be short-lived as the heightening risk for contagion continues to bear down on market sentiment. As the EU Summit scheduled for July 21 takes center stage, Governing Council board member Ewald Nowotny said it is up to the European Central Bank to decide whether or not to it will accept Greek government debt as collateral, and noted that the ECB should not be ‘totally’ dependant on the outlook casted by rating agencies during an interview on CNBC. At the same time, Mr. Nowotny warned that a Greek default would have ‘very grave consequences’ for the region, and went onto say that the central bank has begun its exit strategy after lifting the benchmark interest rate off the record-low. Read more here…