Euro Steady Near $1.22 Ahead Of Greece Vote

The euro made its way higher against the dollar on Tuesday morning after U.S. housing data disappointed and sent the greenback lower. The common currency traded at $1.2233 at 8:00 GMT as investors continued to be hesitant amid speculation that the European Central Bank is planning to ease early next year.

According to the Reuters, data out on Monday showed that U.S. existing home sales had fallen to a six-month low in November, a surprise after two months of increasing figures. The report showed that existing home sales fell 6.1 percent annually, the nation’s lowest reading since May. Though the figures were less than ideal, most believe the general trend from the U.S. housing market is positive and advised traders not to take the November data as a troubling sign. Still, the figure has caused many to trim their fourth quarter GDP estimates to around 2.6 percent.

Meanwhile, the euro remained under pressure as the region’s financials continued to present a worrying picture of the bloc, and political instability in Greece threatened to tear down the nation’s slow and steady climb out of debt. On December 23 and 29, Greek Prime Minister Antonis Samaras’ party will go up against the Syria Party, a radical group that favors abandoning Greece’s bailout program, in a presidential vote. If Samaras’ candidate does not win the election, the country could be forced into a snap election, something investors worry could propel the nation back into financial trouble. Even more concerning is the possibility that Greece could exit its bailout program early and potentially even abandon the euro under the rule of a radical party.