Greece’s Parliament Approves Austerity Measures
Greece’s Parliament voted in favor of new austerity measures needed to receive more money from the EU and avoid a messy default.
Greek lawmakers approved the measures in the early hours. We also saw massive and violent protests.
The new austerity measures, which include wage and even more spending cuts, were approved by a 199-74 vote. Abstaining were 27 lawmakers.
This vote comes after the EU finance ministers held up approval for €130 billion of aid at a meeting last Thursday. The stated, rather plainly that the EU needed legitimate and strong signs that Greece is seriously trying to initiate austerity measures.
On March 20, Greece has a €14.5 billion bonds due . They require the bailout money in order to avoid a messy default.
Jean-Claude Juncker, who heads the Euro zone, warned Greece late Thursday: “In short, no disbursement without implementation.”
Greece might have April, and EU ministers wanted to know that the austerity moves had support. even if an election occurred.
Not all supported the measures. Giorgios Karatzaferis, leader of the nationalist LAOS party, stated that his party would not support further austerity plans .He called the current round a further “humiliation” for the country. “The approval did not come without major cost in the form of escalating protests and violence within Greece,” said Mitul Kotecha, head of global foreign-exchange strategy at Credit Agricole. “Attention [now] shifts to a meeting of European Union finance ministers on Wednesday,” he said.
Daily Forex and Market News
FOREX
The Greek Parliament has approved the austerity bill. The Euro is now above 1.3200. We need to see a move past the 21 Week-MA and resistance at 1.3326 to ease downside pressure. USD/JPY might test the 200 MA resistance now at 78.06.
USD/CHF is now in a range of 0.9100 to 0.9250. We see key support at 0.9060. Cable might now test 1.5700 and then 1.5650 if it cannot rise above 1.5800. The Aussie fell sharply from last week's high of 1.0844. We might test 1.0650 on a break below 1.0700.
MARKETS
The DJIA saw a high on Friday at 12890. We have key resistance at 12600 and 12900 before any move towards 13000. Dow might test the resistance at 12900 this week.
Nikkei is trading up 16 points at 8963.
COMMODITIES
Crude is still trading in a range and might not rise above 100.
Gold is recovering from 1700 and is still trading from 1700 to 1755. While below 1755, we might test 1700. Below that we see levels at 1680 and 1675.
After the Greek Vote, The Euro Climbs
The Euro has risen above 1.32 and might test 1.3400 next.
The 50% retracement level and next key resistance is at 1.3435. The bullish channel resistance can be found just above that level.
Alternatively, we see support at 1.3170 and at1.3200.
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The USD/JPY Stalls at 75.55
The USD/JPY might be forming a base after the recent down move stalled before the record lows at October’s 75.55.
The latest daily close back above 77.00 might test the next key resistance at 78.05 then 78.30.
Alternatively, a move below 76.50 could give us concern and stall the model.
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