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Forex - EUR/USD firms on Greece elections results

Published 06/17/2012, 07:07 PM
Updated 06/17/2012, 07:08 PM
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Investing.com - The euro firmed against the dollar in relief buying early Monday on news Greece's conservative New Democracy political party finished ahead in Sunday's parliamentary elections, beating out leftwing Syriza.

The election was seen as a vote on whether the country wanted to stick with the euro or not.

In Asian trading on Monday, EUR/USD was trading up 0.63% at 1.2719, and up from a session low of 1.2697, and off from a high of 1.2748.

The pair was likely to find support at 1.2592, the low from June 15, and resistance at 1.2824, the high from May 21.

Conservative political party New Democracy came out ahead in Greek elections on Sunday, sparking relief buying.

The party edged out the leftist Syriza, which favored scrapping austerity measures tied to bailout money.

Past Greek administrations agreed to austerity measures such as layoffs and spending cuts in exchange for EUR130 billion in bailout money, and scrapping austerity threatened to halt the flow of rescue funding and could have opened the door to a Greek exit of the currency union.

New Democracy politicians favor sticking with bailout, though they say the country needs more growth-oriented policies going forward.

Leaders across Europe have complained that austerity policies cut into growth rates and exacerbate economic downturns.

New Democracy and PASOK, another pro-bailout party, appeared on track to garner enough votes at the time of writing to push through a coalition government in favor of sticking with the bailout.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.63% at 0.8098 and EUR/JPY trading up 1.08% at 100.60.

Markets will continue to digest the outcome of the Greek elections on Monday.

On Tuesday, the Federal Reserve begins its monetary policy meeting.








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