Clashes in Athens Mount, But Austerity Set to Pass

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Protesters are clashing violently with the police in Athens’ Syntagma square, but the government is gathering more votes.

EUR/USD is moving higher, but is limited by the 1.4450 resistance line.

Update 11:50 GMT: EUR/USD retreats to 1.4420. Greek finance minister takes the stand. The prime minister will probably speak just before the vote.

You can see the action on the streets here:

LIVE STREAMING: Γενική Απεργία ενάντια στο… por News247
This includes tear gas, stun grenades and more, according to Greek journalist Matina Stevis. I recommend following her for live updates.

Austerity set to pass

The government is gaining more support, from the ruling party members as well as opposition. There was talk that the vote could happen earlier than scheduled, but this isn’t the case. The debate is still going on.

You can see the vote in action here. Note that this is the first vote and that the parliament still needs to vote on some implementation laws tomorrow. If the first vote will pass easily, the next vote will turn into a non-event. But if it will be “on a knife’s edge”, the drama will continue.

EUR/USD is moving forwards, currently getting closer to the 1.4450 line. It could act irrationally even if the vote passes. Trading AUD/USD on this event could prove wiser.

Why? A “buy the rumor, sell the fact” could occur. Or not. It is just too hard to tell. Forex market reaction to this vote could be too similar to Non-Farm Payrolls reactions. The markets can move in one direction just to turn back afterward.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

1 Comment

  1. Even with the austerity measures in place, any reduction of the budget deficit will be a drop in the ocean for a country with government debt at 100% of GDP.

    Most observers see a Greek default inevitable at some stage.