The Single Currency is back on the rebound after dropping briefly on profit-taking following news that the Greek parliament voted in favour of the austerity measures, with Greek Prime Minister successfully obtaining the required majority of votes from his cabinet members.
Investors booked profits right after the news since the Euro had been brought up to its highest levels across most majors in days and were eager to get out of their long positions. EURUSD had peaked at 1.4447 before the news and then dropped to 1.4345 after the news. It has since been rising again to gain 95 pips and is currently trading at 1.4440 at 15:30GMT.
The reason for the rebound is that investors are ready for another round of optimism that the Greek government will win approval on Thursday for legislation detailing specific implementation measures for an austerity package.
A positive outcome of the vote tomorrow will open the way for Athens to receive international funding in order to avoid default.
EURCHF also rose after the news, rising from 1.1988 to 1.2050.