greek austerity vote

Euro Up Ahead of Greek Austerity Vote

The euro rose against the major currencies today after news of French banks agreeing to let Greece pay back debt at a slower rate in order for Greece to deal with more immediate financial obligations. The euro (EUR/USD) is up 0.52% today at $1.4283 today. Against the yen (EUR/JPY), the euro is up over 1% at ¥115.4250 and the euro is up nearly 1% against the franc (EUR/CHF) at 1.1903 francs.

The dollar on the other hand lost ground against most of the major currencies, but did see gains against the Australian dollar. The DXY, or dollar index, was down 0.30% and is currently trading at 75.36. The DXY measures the performance of the dollar against six currencies.

Many currency traders remain cautious ahead of votes in the Greek parliament this week on new austerity measures. Here’s what Forex.com had to say about the consequences of this vote. “Should the measure fail to pass, we would expect a spike in risk aversion as markets quickly price-in a likely Greek default within weeks. Assuming the measure does pass, the EUR may experience another relief rally, but we would expect it to be limited to the $1.4450/$1.4500 area due to lingering concerns.”

It will be interesting to see what happens in Greece over the days and weeks ahead. Will Greece approve these new austerity measures and receive more loans to avoid default? Or will they default, casting doubts about the euro-zone’s ability to stay together?

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