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Foreign Exchange

Fast money dumps euro following Greek vote

Short-term players dumped the euro on Wednesday, closing out long positions after Greek prime minister George Papandreou won a parliamentary confidence vote, which raises hopes that a €79 billion ($113 billion) bailout package will go ahead.

The euro fell to $1.4345 after the vote, from as high as $1.4416, as leveraged accounts took profits on bets that the confidence vote would be passed. Bargain hunters at the lower levels helped pushed the currency higher to $1.4394 in early London trade.

“It was a case of ‘buy the rumour, sell the fact’, and the euro fell pretty sharply once the vote was passed,” says Jonathan Cavenagh, a currency strategist at Westpac Banking Corp in Singapore. “The euro is not out of the woods yet, but there seems to be more chance of a short-term fix.”

If euro concerns abate, focus is likely to... 

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