Asian markets opened firmer amid optimism that the Greek parliament would finally approve the austerity bill amid widespread civil unrest in the country. The bill was eventually passed with 199 for and 74 against, with parties promptly expelling those lawmakers that voted against it. The vote now has temporarily avoided a Greek default and possible exit from the Eurozone, and should now allow IMF/EU partners to release the E130bln rescue loan. EUR traded up from 1.3185 to $1.3262 but ran into Asian sovereign supply and some profit taking before slipping to $1.3205. Asian equity markets then helped a bounce back to $1.3250. GBP pushed up from $1.5760 to $1.5799, but lagged the move with some weight seen as a result of CBI cutting UK growth forecasts in 2012 from 1.2% to 0.9%, although adding that the country would avoid a recession. AUD was another big gainer on the Greek solution, up to $1.0741 from $1.0666 and has remain bid with Asian bourses and firmer commodities. USD/JPY traded a Y77.55-78 range amid the usual veiled threats on intervention from PM Noda and Fin Min Azumi.
EasyForexNews Research Team