Forex News – Greek Parliament successfully passes austerity legislation

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The Greek government won parliamentary approval to pass legislation in order to implement austerity measures that will prevent the Euro zone’s first sovereign default. Greek Prime Minister George Papandreou won a parliamentary majority in favor of the law that will implement the five-year austerity plan required under an EU/IMF bailout package.

The Euro rose against most counterparts, soaring the most against the Swiss Franc. The good news of the outcome of the second round of voting suppressing some investor demand for safe haven assets like the Swiss Franc.

USDCHF surged 126 pips from 0.8338 to0.8463.

Meanwhile, another safe haven asset, gold, also briefly slid to hit session lows after the news. Spot gold, which is set for its eleventh quarterly gain in the second quarter of this year, was last down by over $11 at $1,501.38 an ounce compared to a pre-news high of $1,512.78.

Also, gold priced in Euros fell to a session trough of 1,038.90 Euros an ounce, its lowest in since May 9. So far this quarter, gold in Euros has risen by 2.6 percent.