US Dollar Falls on Greek Vote

US dollar is lower as the Greek parliament votes to accept austerity measures requested by Eurogroup leaders as a condition for receiving bailout funds. US dollar weakness is a product of renewed optimism in Forex traders, and expectations for a stronger euro.

Risk appetite is back on as Forex traders find new optimism regarding Greece. Lucas Papademos won parliamentary support for the tougher austerity measures the Eurogroup leaders wanted, and that is providing support for the euro. The US dollar is falling back as a result.
With Forex traders interested in higher yields, it is little surprise that the greenback is pulling back. Recently, Ben Bernanke expressed his thoughts that interest rates would remain low until 2014, and the low yields are not attractive to those looking for higher returns.
Even though the US dollar is falling against the euro, though, it doesn’t mean that Greece is completely out of the woods. The austerity measures are unpopular, and Greek citizens continue to protest and display unrest. With all of the unrest in Greece, things could still remain troublesome. Plus, the euro is still at risk from other countries, like Italy, with high levels of debt.
At 14:36 GMT EUR/USD is higher at 1.3240, up from the open at 1.3209. GBP/USD is up to 1.5803 from the open at 1.5778.

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