Greek election boosts the wise money markets

Global money markets and the euro rose initially on the back of the Greek election result which Greece’s pro-bailout party New democracy winning a closely fought election battle with Syriza the anti-austerity party finishing a close second. Greek election boosts the wise money marketsThe agenda will be now for New Democracy to form a coalition with Pasok- together they would secure enough seats to form a majority coalition and talks are expected to start today.

The outcome is very good for the markets and the euro and equities have pushed higher on the news as short positions are cut and optimism rises, the US Dollar has slid as investors increase appetite for risk.

Today and for the rest of this week we will see the Greek election result digested and it looks like for now at least an imminent Greek exit from the euro has been avoided.

Europe and Greece still faces many challenges ahead and the spotlight will focus upon the G20 in Mexico to see if any further decisive action on Europe will be forthcoming.

World leaders are set to boost the $430 billion IMF fund being used as a firewall for struggling European economies.

The weak fundamentals of Greece, Spain and Italy need urgently addressing and traders will be looking for more from world leaders in spite of the progress with the Greek election.

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