Greek Parliament passes Austerity Bil
City Index February 13, 2012 1:00 PM
<p>Greek Parliament passes Austerity Bill. Greece has finally approved an unprecedented unpopular vote of €3.3 billion of fresh budget cuts. Leaders of the main Greek […]</p>
Greek Parliament passes Austerity Bill. Greece has finally approved an unprecedented unpopular vote of €3.3 billion of fresh budget cuts. Leaders of the main Greek political parties now have to personally sign up to these reforms.
Aussie-dollar opened at 1.0670 in Asia after lows in New York of 1.0640 on Friday. The pair slipped to 1.0666 in early trade before heading up with the euro-dollar on optimism that the Greek vote would pass. The move was extended to 1.0725 before talk of Asian sovereign euro-dollar sales weighed and returned aussie back to 1.0687. Heavy buying from a macro fund (also seen in euro-dollar) after the positive Greek vote helped a stronger recovery through stops at 1.0730 to highs of 1.0749 before running into better offers. Firmer Asian equity markets and broader strength in some commodities also backed up the rally. Offers are seen up towards 1.0765-1.0770, with more above at 1.0780-1.0700 and 1.0815-1.0825. Support at 1.0695 and 1.0644.
Euro-dollar opened at 1.3185 and headed higher on anticipation that the Sunday vote by the Greek Parliament would lead to a passing of austerity measures, thereby opening the door to EU/IMF approval of the second bailout package of €130 billion needed to avoid a Greek default and possible exit from the eurozone. Offers were taken out through 1.3210 and 1.3230, later tripping stops through 1.3245 and 1.3262 as news broke that the vote passed. Talk of sales from an Asian sovereign together with profit taking led a slump back to 1.3205 before Asian bourses firmed and some strong macro buying led a bounce back to 1.3250. Offers lie in the 1.3260-1.3270 region and stops are now building above 1.3270 with further offers likely in the 1.3300-1.3320 region ahead of 1.3325.
Cable opened around 1.5770 after hitting lows of 1.5730 in New York late Friday. Cable pushed up in early trading to 1.5799, tracking euro-dollar on optimism that the Greek Parliament would pass the latest austerity measures. Cable slumped back to 1.5769 as euro-sterling tracked higher on the news that the vote had passed with a 199 for and 74 against. The pair then dipped again to 1.5760. Cable later picked up again to 1.5795 as euro-dollar rose on macro buying and firming Asian bourses. The cross traded steadily higher from 0.8368 to 0.8394. Cable bids are now seen down at 1.5730 with offers around 1.5800 and larger up at 1.5840-1.5850. Euro-sterling offers lie in wait at 0.8400-0.8410 with support seen towards 0.8365 and 0.8355.
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