News of tough talks between Greece and the rest of the euro zone rattled the euro and that suggests that the recent rally in EUR has shaky legs to stand on, says Saxo Bank’s John Hardy.

Eurogroup finance ministers met with the EU Commissioner Pierre Moscovici and ECB President Mario Draghi for informal talks in Riga, Latvia, where the ongoing Greek debt crisis dominated the discussions.

According to Hardy, comments from the meeting revealed that the talks are set to drag out as Greece and the rest of the Eurogroup remain far from an agreement. 

In the meantime, the euro will face new headline risks next week, when the FOMC meets.