Forex - EUR/USD holds gains as Greek austerity vote looms
Investing.com
Published Jun 27, 2011 10:20AM ET
EUR/USD clawed back up from 1.4103, the pair’s lowest since June 16 to hit 1.4246 during early U.S. trade, rising 0.41%.
The pair was likely to find support at 1.4067, the low of May 5 and resistance at 1.4305, Friday’s high.
Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.
European governments have said they want private creditors to roll over as much as EUR30 billion worth of Greek government bonds.
Greece’s Prime Minister George Papandreou needs to secure parliamentary approval for a EUR28.4 billion, five-year austerity package on Wednesday, in order to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
The euro was also higher against the pound, with EUR/GBP rising 0.23% to hit 0.8912.
Earlier Monday, ratings agency Moody's said Greek banks have lost approximately 8% of their private-sector customer deposits so far this year and warned that those lenders would face severe cash shortage if outflows exceeded 35% of their deposits.
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Written By: Investing.com
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