Euro Falls After Confidence Vote

The euro dropped today even after Greece’s Prime Minister George Papandreou won the confidence vote as traders think that he’ll struggle to implement austerity measures.

Jeremy Stretch, the executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce, said:

Markets are refocusing on the fact that the euro zone has dodged the bullet in terms of the confidence vote, but now we are looking forward to the austerity vote. Whether the response will continue to be the case for the austerity measures next week is a little bit more questionable.

The International Monetary Fund warned that if the European Union leaders won’t deal with the sovereign-debt crisis soon there can be “large global spillovers”.

EUR/USD rebounded to 1.4400 as of 13:50 GMT today after falling from 1.4410 to 1.4344. EUR/JPY dropped from 115.58 to 115.31.

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