Euro decreases on the Greek Parliament vote on austerity measures

16.07.2015

On Thursday, the euro fell after the Greek Parliament voted in favor of the austerity measures required by the country's creditors to provide a third rescue package.

The EUR/USD hit a low at 1.0910, the weakest level since June 1, and is now traded at 1.0934, down 0.14% today.

The approval of the austerity measures by the Greek parliament made possible to continue the negotiations on the third bailout package, but also raised doubts about the future government of Greek Prime Minister, Alexis Tsipras, as many lawmakers representing his left Syriza party, voted against the agreement.

Later on Thursday, Tsipras, is expected to replace several ministers.

Also today, the Eurozone finance ministers plan to hold talks on the latest news from Greece.

On the eve of the Greek vote on Wednesday, the French National Assembly voted overwhelmingly in favor of starting negotiations on a third aid package. German Bundestag plans to hold the vote for Friday.

Meanwhile, officials in Brussels are working to prepare the package of short-term financing of € 7 billion to support Greece to adopt a new rescue program.

Demand for the dollar is still maintained by the reduced threat of a Greek exit from the Eurozone, making the Federal Reserve feel free from potential obstacles to tighten monetary policy.

On Wednesday, the Fed chief, Janet Yellen, reiterated that the Central Bank increases the interest rates as planned, by the end of the year, if the economy continues to grow as expected.

Dollar is stable near three-week highs against the yen; the USD/JPY currency pair is traded at 123.80.

Euro was little changed against the Japanese currency pair; EUR/JPY is found at 135.36.

The USD index, which measures the greenback against a basket of six major currencies, is traded near six-week high, at 97.41.

Meanwhile, US stock indices show stability before opening. Futures of the Dow indicate an increase of 0.1%, futures on S&P 500 rose 0.1%, while the Nasdaq 100 futures rose 0.2%.

On the commodities market, gold futures were traded at $ 1150.80 per ounce, while crude oil futures are traded at $ 52.49 a barrel, down slightly from $ 52.59 earlier.

Back Next suggested article