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Forex - EUR/USD erases gains after Greek austerity vote

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Forexpros - The euro erased gains against the U.S. dollar on Wednesday, pulling back from a two-week high after Greece's parliament passed a vote on a EUR28 billion austerity plan demanded by international lenders.

EUR/USD pulled back from 1.4447, the pair's highest since June 15, to hit 1.4348 during early U.S. trade, slipping 0.15%.

The pair was likely to find support at 1.4236, Tuesday's low and short-term resistance at 1.4496, the high of June 14.

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."

The euro was also lower against the pound, with EUR/GBP sliding 0.07% to hit 0.8974.

Also Wednesday, a report showed that pending home sales in the U.S. rose significantly more-than-expected in May, with all regions experiencing gains from a year ago.

The National Association of Realtors said its pending home sales index jumped by 8.2% in May, blowing past expectations for a 2.4% gain.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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