Posted by Mark ThompsonThe euro rose as high as $1.40 in foreign exchange trading this morning (October 27th), after European Union (EU) leaders were perceived to have taken a step towards resolving the ongoing debt crisis in the region.According to Reuters, the multi-nation currency rose by 0.6 per cent, its highest level in seven weeks, after a 50 per cent loss was accepted by private banks on the Greek debt they hold.The European Financial Stability Facility is set to be officially put in place next but will mean the nation's deficit now stands at €100 billion, ensuring that the current level of 160 per cent of gross domestic product should be lowered to 120 per cent by 2020.Further to this, the bailout funding available to the region will be increased to €100 billion.Commenting on the deal, equity strategist at Credit Suisse in Sydney Damien Boey said: "The devil is in the details here ... we don't actually know how they are planning to increase the bailout fund size from €440 billion to a trillion."On top of that, there are some questions as to whether €1 trillion in itself is enough."The deal was put in place following an emergency meeting in Brussels yesterday attended by heads of government including prime minister David Cameron, German chancellor Angela Merkel and French president Nicolas Sarkozy.According to the BBC, Mr Sarkozy, speaking at a news conference this morning, stated: "The eurozone has adopted a credible and ambitious response to the debt crisis."Meanwhile, the broadcaster note that Silvio Berlusconi, the Italian prime minister, promised his country would make efforts to lower the amount it owes.Speaking ahead of the meeting, analysts from BNP Paribas told Reuters that the euro had the potential to rise to $1.40 in forex trading before the week came to a close.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site