Euro Recovers as Greeks Pass Austerity

By: Barbara Zigah

With approval of a new austerity law passed by the Greek Parliament, the Euro edged up against the U.S. Dollar in Asian trading, pushed higher by investor hope that the Greek government will be able to secure the much-needed funding for the second bailout loan. Currency analysts point out that Greece still has some way to go before actually receiving the money which would allow them to satisfy debt that is maturing in March. Several members of the Greek parliament resigned in protest, echoing the displeasure of the Greek populace some of whom have turned violent with the prospect of still more austerity being meted out.

As reported at 11:27 a.m. (JST) in Tokyo, the Euro traded 0.3% higher at $1.3235, less than 100 pips off the 2-month peak of $1.3322 which was struck last week. The 90-day moving average, $1.3314, is now seen as the next major resistance.

Another roadblock to Greece’s receipt of the bailout money is approval in several of the E.U. member parliaments. Already Germany has publicly expressed its displeasure and exasperation with Greece. Nonetheless, the Euro is finding some support as other signs of stability appear to emerge, including a Portuguese debt auction with much improved yields.