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Discussions ran late into the night yesterday (October 26th) and resulted in policymakers agreeing a deal that sees the eurozone bailout fund - the European Financial Stability Facility - raised to $1 trillion (£876 billion) and banks holding Greek debt accept a 50 per cent loss on their investment.
Under the terms of the agreement, banks must also generate more capital to ensure they can protect themselves against losses incurred if governments default in future.
Shares have jumped on stock markets around the world as a result, with Reuters reporting European stocks were up almost four per cent by 15:00 BST and Wall Street indices began trading at least two per cent higher.
Consequently, the euro has also rallied, something that is likely to be welcomed by those learning to trade Forex who have been steering clear of the currency due to the uncertainty surrounding the eurozone debt situation.
The news agency revealed it had gained 1.73 per cent against the dollar in afternoon trading, taking it to $1.414 (88.2p).
President of the European Commission Jose Manuel Barroso hailed the arrangement, stating it shows "Europe is closer to resolving its financial and economic crisis and to getting back on a path of growth".
"We are showing that we can unite in the most difficult of times," he added.
However, the deal has not been met with universal approval by commentators, as some believe the measures do not go far enough to quell worries about the stability of countries such as Greece, Spain and Portugal.
BBC Europe editor Gavin Hewitt said while there is no doubting the "ambition" of what has been achieved through the summit, "many crucial details are missing". He said the €1 trillion fund is likely to be lower than some will feel is necessary to ensure major economies are safeguarded and noted Greece, which has been worst-hit, faces "long years of austerity".
"With this deal, some time has been bought. Some of the crucial details of how, for instance, the rescue fund will work will not be hammered out until November," he observed.
Former prime minister Sir John Major was also critical, arguing the arrangement will not solve the flaws in the euro that he feels have been present since the single currency was introduced. He argued it is "undesirable and unsettling" that Germany's powerful economy uses the same currency as its weaker counterparts, enabling the country to mount up "huge trade surpluses within the eurozone while others have comparable deficits", something that is likely to continue given the "estimated 30 per cent currency advantage" Germany has.
So, while news of the agreement has led to a short-term boost for the euro - indeed, Reuters reports it has hit seven-week highs against both the dollar and the pound this afternoon - the long-term effects on the stability of the common currency are less clear. Those learning Forex may want to try and take advantage of the short-term boost, but should also be aware that potential risks could pose a problem later down the line.
Posted Greg Secker
