The euro gained today as stocks and commodities rallied on the speculation that Greek Prime Minister George Papandreou will win a confidence vote in the parliament.
Papandreou needs parliamentary approval of budget and asset sales that are required to receive the bailout from the European Union and the loan from the International Monetary Fund. It’s hard for the Greek government to press the planned austerity measures as most Greeks understandably aren’t fond of spending cuts. But Forex traders hope that the Prime Minister will convince other politicians of the necessity of such unpopular steps.
The Standard & Poorâs 500 Index rose 1.3 percent, while the MSCI World Index jumped as much as 1.6 percent. The Thomson Reuters/Jefferies CRB Index of raw materials rallied 0.6 percent.
EUR/USD climbed from 1.4302 to 1.4375 and EUR/JPY advanced from 114.79 to 115.32 today as of 22:56 GMT. EUR/GBP rose from 0.8826 to 0.8882 before trading at 0.8860
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