Exchange traded funds tracking the euro’s movement against the dollar were set for a flat open Wednesday after the Greek government won a vote of confidence in parliament, which leads the way to creating an austerity plan to lock in a new bailout from the European Union and International Monetary Fund.
Other exchange traded products providing exposure to the euro include iPath EUR/USD Exchange Rate ETN (NYSEArca: ERO) and WisdomTree Dreyfus Euro (NYSEArca: EU).
“We are hopeful the threat of default is enough to get the austerity measures to pass, in which case that’ll be seen positive for the euro, but that’s another week away,” said Sue Trinh, senior currency strategist at RBC Capital Markets, in a Reuters report. [Euro ETFs Feel Weight of Debt Crisis.]
“This vote buys [Prime Minister] Papandreou a week,” said Daniel Genter, president of RNC Genter Capital Management. “But they’ve got to pass an austerity package within the next 30 days. There’s just not enough confidence right now that they’re going to get it through.”