Forex Europe News – Default or hope?

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Tonight it is expected to have the final results from the Greek parliament concerning the confidence vote. If George Papandreou government survives the vote will proceed immediately to the five year harsh economic package introduced by the country’s creditors. Unions, activists have crowded the perimeter of the parliament house, protesting for the new austerity measures to be introduced. The markets have bet in favor of the Greek PM and the Euro has surged across the board. However, some investors face the events with skepticism as the vote of confidence does not guarantee implementation of the reforms and the single currency gains may be short lived. In the case that Papandreou fails to collected the needed majority of votes tonight, despite the fact that his party has 155 seats out of a total of 300 (fears of leak persist), the heavily indebted peripheral economy will step towards to political chaos, with the threat of default to be closer than ever for the first time in a Euro zone state. So far in the day the single currency grabbed some 85 pips against the US Dollar to hit a four days high of 1.43874, currently the pair is trading slightly lower at 1.4369.