Forex - EUR/JPY falls after Greece passes austerity vote
Investing.com
Published Jun 29, 2011 09:24AM ET
EUR/JPY pulled back from 117.17, the pair’s highest since June 9, to hit 116.09 during European afternoon trade, shedding 0.41%.
The pair was likely to find support at 113.82, Monday’s low and resistance at 117.45, the high of June 9.
Greece’s parliament voted 155 to 138, with five members abstaining, in favor of ratifying unpopular austerity measures aimed at saving the country from defaulting on its debt, as violent protests continued outside parliament buildings.
The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Had the austerity package been rejected, it could have resulted in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
There will be a second vote on Thursday for the implementation of different parts of the package, such as tax rises and the sale of state assets.
Ahead of the vote, Prime Minister George Papandreou urged MPs to approve the package, saying, "We must avoid the country's collapse at all costs. Now is not the time to step back."
Meanwhile, the euro was higher against the Swiss franc, with EUR/CHF climbing 0.48% to hit 1.2015.
Earlier in the day, Greek central bank Governor and European Central Bank policymaker, George Provopoulos, warned that a 'no' vote would be "suicide" for Greece.
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Written By: Investing.com
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