By TraderVox.com
Tradervox (Dublin) – Euro advanced against the yen and the dollar today, after the Greek Prime Minister Lucas Papademos secured a parliamentary approval for the international bailout package for his country. This came ahead of Germany’s PMI report expected later today and Bernanke’s testimony to the Congress today. Greece secured the world’s largest bailout package with 213 votes for the accord and 79 votes against. The Prime Minister had received the mandate on November 16 with 255 lawmakers giving him a go ahead.
Papademos has been very influential in securing the Greek bailout package convincing private investors to forgive 100 billion Euros of debt that paved the way for EU leaders to give the bailout money. The euro zone governments have been asked to offer a better firewall to curb the debt crisis in the region. Countries such as Portugal and Ireland are already receiving financial aid and there is risk of contagion in Italy and Spain.
The rose after the vote to 110.88 yen from 110.78 yen level it closed yesterday in New York. The euro also climbed against the dollar by 0.2 percent to $1.3254. The New Zealand and Australian dollars also climbed against the yen and dollar after the report of the approval. Germany is expected to give its manufacturing and services data tomorrow.
Earlier yesterday, the euro fell against the buck and pound due to concerns about the economic growth in the region. These concerns still linger as Netherlands have increased its 2013 budget deficit forecast from 4.6 percent to 4.5 percent. Further, German Federal Statistics Office have indicated that producer prices increased by 0.4 percent from January’s 0.6 percent increase. It had been estimated to increase by 0.5 percent by most economists around the world.
The positive news from the euro region are much welcomed by investors who are very keen to understand the prospects of the region as a looming economic recession is forecasted later in the year. The Asian market was upbeat about the Greek vote and we are yet to see what will happen in the US session.
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