Agreement on Greek Bailout Will be Put to Greek Leaders

by Fxtimes

European crosses rallied in today’s session, especially in the New York morning trading session, as there was optimism around a agreements on Greece receiving its second bailout. The agreement’s terms will be put to a vote to Greek political leaders. They need to accept it in order for it to be applicable.

At around 19:00 GMT time the Prime Minister Papademos will meet with political leaders to see if they can come together and find consensus on austerity measured needed.

The EUR/USD pair rose above 1.32 in today’s New York morning, breaking away from its 70-pip range established in today’s session. The euro was also stronger against the pound, as well as commodity currencies like and New Zealand and Canadian dollars.

An Agreement Would Be A Positive for Risk Rally

If there is agreement on austerity measures needed to secure the second Greek bailout that will be a positive risk sentiment event as it means that Greece would avoided defaulting come March 20 when €14.4 billion bond payment is due and it would likely mean that Greece is close to terms on agreements with creditors in regards to restructuring its debt voluntary manner.

The concern around Greece has stalled the recent risk assets rally we have seen since made December and a positive resolution would return market attention to the expectations for economic growth outlooks for 2012.

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