Traders bet on positive outcome, but gains limited
The euro rose on Tuesday as investors bet Greek Prime Minister George Papandreou would survive a confidence vote crucial in helping the country avert a debt default. Traders were wary of holding short euro positions going into the parliamentary vote due later in the day, and analysts saw only short-lived boost if it is passed as Greece must also vote on new austerity measures on June 28. The euro EUR was up 0.3 percent at $1.4355, with offers reported around $1.4380-85. It was expected to face stiff resistance ahead of $1.4500, with the 55-day moving average around $1.4411 ahead of the June 15 high at $1.4451. The euro trimmed gains after a survey showed German investors in June took their most bearish view about the euro zone's largest economy in over two years, hurt by the Greek debt crisis and indicators of softer activity ahead "We should see cautious trading ahead of the Greek vote and if it is passed euro/dollar should react positively," said Roberto Mialich, currency strategist at Unicredit in Milan, who expected gains to be capped below $1.4450. more
