The Austerity package was approved by the Greek Parliament. So the euro dove! 
EUR/JPY is at session lows of 115.90 after the Greeks successfully passed their medium-term austerity plan, which gives them the possibility of getting further EU / IMF funding.
The Euro/Dollar forex pair spiked down a whopping 90 pips, which you can appreciate from the following minute chart:
I thought that with all the uncertainty around the Greek vote on the Austerity plan set for Wednesday, there would be quite some diving for the euro to do. I was wrong, apparently. Today the euro pushed into positive territory against the US dollar on the forex market, trading at about 1.4182 right now. But still “Events in Greece will continue to take center stage this week,” according to Sara Yates and Yuki Sakasai, strategists at Barclays Capital, as cited by MarketWatch. So there’s some hope for my Euro-long trade.
The euro reached levels above 1.4380 during Asian forex trading hours. Currently, it is trading at 1.4345. More and more European leaders are conveying desire and political will to bail out the debt-ridden country of Greece. Forex traders have picked up this sentiment and sent the euro flying high. Hopefully, it will come down with a thud later today as I just put in a short position in the EUR/USD forex pair.
Amid growing concerns about the potential necessity for more financial aid, the euro plummeted to new lows on the forex market today. A report said European Central Bank Governing Council member Nout Wellink favors propping up the European Financial Stability Facility — the Euro zone countries bailout fund — to assure private-sector support for another Greek aid package.
“Increasingly, the concern is that European policy officials will be unable to prevent a Greek debt default from infecting other highly-indebted euro-zone economies such as Ireland, Portugal, Spain, Italy, Belgium and France,” said strategists at FxPro as quoted by MarketWatch.
The EUR/USD forex pair is currently trading at 1.4160 after hitting a low of 1.4071 earlier in the day.
The euro continued to gain traction in the forex market from hopes that a resolution to Greece’s debt problems and a new plan for austerity is imminent. EUR/USD reached 1.4442 in Asian forex trading.
EU policy makers are “struggling to reach a consensus on an acceptable degree of ‘burden-sharing’ between the private and public sector — a necessary condition for additional financial support to Greece,” Frederik Ducrozet, economist at Credit Agricole, said in a note to clients, as quoted by MarketWatch.
The US dollar lost some ground against other major currencies yesterday, after minutes of FOMC’s April meeting demonstrated that its officials were not united on when to start tightening monetary policy, some of them being concerned that tighter policy could harm the economic recovery in the US.
