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The Irish parliament is approving the budget bit by bit. The long procedure will be over soon. The budget includes harsh cuts. This approval was a pre-condition for the bailout program for Ireland by the EU and the IMF, worth 85 billion euros.

82 members voted for the budget, as expected. The strength of the ruling coalition was already evident in the procedural  voting. While this result was generally expected, it wasn’t 100% certain. Now that it’s behind us, the Euro can rise.

EUR/USD is now trading at 1.3308, weaker than earlier in the day, but still around the 1.3334 line. Below, 1.3267 and 1.32 provide support, and above, 1.3334 and 1.3440 are  resistance  lines. For more technical analysis, see the EUR USD forecast.

The budget consists of wide and deep cuts in defense, welfare, health, and even in one of the government’s airplanes. This is good for the Euro, the rise in US treasury yields strengthens the dollar across the board.

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