The euro rose against the US dollar this morning, after Greece announced that it is planning to implement severe austerity measures to secure a multi-billion aid package from European Union and the International Monetary Fund.

This will help the crippled Mediterranean economy avoid a default. The euro also benefitted from the remarks of European Commission President Jose Barroso, who said he is confident a rescue package for Greece will be completed 'in days', suggesting that Greece's rescue package is virtually a done deal. I must point out that structural problems in the eurozone are likely to continue haunting the currency. Official data released today showed Spain's unemployment rate soaring above 20% for the first time in more than a decade in the first quarter. That was ahead of the 19.8% median forecast shown in a Bloomberg survey of estimates and follows a jobless rate of 18.8% in the prior three months. A rise in unemployment is likely to make it more difficult for Spain to get its books in order and it may eventually be the next country to request bailout funds from the EU.