Opened at 1.3185, and headed higher on anticipation that the Sunday vote by the Greek parliament would lead to a passing of austerity measures, thereby opening the door to EU/IMF approval of the 2nd bailout package of E130 bln needed to avoid a Greek default and possible exit from the Eurozone. Offers were taken out through $1.3210 and $1.3230, later tripping stops through $1.3245 to $1.3262 as news broke that the vote passed with 199/74 in favour. Talk of sales from an Asian sovereign together with profit taking led a slump back to $1.3205 before Asian bourses firmed and some strong macro buying led a bounce back to $1.3250. Offers lie in the $1.3260/70 region and stops are now building above $1.3270 with further offers likely in the $1.3300/20 region ahead of the $1.3325 100 day MA. There is little to excite on the data front today but the calendar is relatively full for the rest of the week, with EU IP and ZEW tomorrow, and EU Q4 GDP on Wednesday.
EasyForexNews Research Team