The Euro was given a boost this morning around 8:50GMT after the German Bundestag (parliament), voted in favour of a motion to approve new aid for Greece.
This was good news to the markets as it raises optimism that progress is being made to help Greece cope with its deepening debt problems and removed a potential hurdle to preventing the Euro zone’s first sovereign default.
The German Coalition lawmakers in Parliament voted in favour of a non-binding resolution from the ruling coalition parties to back additional aid for Greece. They met this morning to draft a resolution giving German Chancellor Angela Merkel and German Finance Minister Wolfgang Schaeuble guidelines on Greece.
Schaeuble told lawmakers that Greece’s financing needs total about 90 billion Euros through 2014.
After news of the vote, the Euro jumped 30 pips to 1.4491 from 1.4462 within two minutes, the continued to rise to 1.4494. Around the same time, Euro rose 25 pips against the Swiss franc to 1.2192 from 1.2167 in two minutes then continued higher to 1.2206.