Monday, 13 Feb 2012

Greek Lawmakers Approve Austerity Measures

Various currencies, such as the euro and British pound, saw upward movement in response to the positive news released from Athens this morning. During a late-night meeting, Greek lawmakers approved a new round of austerity measures that encouraged euro-zone countries that Greece is making its best effort to stave off defaulting on its debt. After a series of steps that failed to meet budget targets, many in the euro-zone are hoping that this round of austerity measures will result in Greece receiving a much needed bailout package.

The good news raises the possibility that more volatile currencies may see upward movement this afternoon. Already, the euro is seeing renewed strength and has moved up in value by 0.4 percent against the USD as of this morning. Additionally, the New Zealand and Australian dollar are experiencing upward movements against the greenback.

At the same time, after several days of fret over the possibility that Greece will not approve the desperately needed austerity measures, many are taking this news with cautious optimism. This can translate into many traders opting for short euro positions until a more definitive outlook on the Greek debt crisis can be discerned.