Euro firms ahead of Greek debt vote

The European single currency was firmer against the dollar on Tuesday as the markets waited for a make or break vote in Athens on the Greek government's latest austerity package. Dealers said the hope is that the Greek debt crisis is finally nearing resolution, one way or the other, although there could yet be more twists before all is done, leaving investors to hedge their bets. Investors know the stakes are sky high, they said, as failure to pass the measures means Greece will default on its debt, with all that could mean for the eurozone and the wider global economy. European Union President Herman Van Rompuy bluntly told Greek lawmakers Tuesday to pass the package as there was no 'Plan B' if they did not. "There are decisive moments and the coming hours will be decisive, crucial for the Greek people, but also for the eurozone and the stability of the world economy," Van Rompuy told the European parliament. In late London trade, the euro stood at $1.4361, up from $1.4277 in New York late Monday and the dollar eased to 80.86 yen from 80.90 yen. "The single currency has rebounded in the last 24 hours as optimism increases that a solution will be found to avert a Greek default," said Michael Hewson of CMC Markets. Kathleen Brooks at Forex.com said "expectations seem to be growing that Greece will pass the crucial austerity vote in the next few days." At the same time, Brooks cautioned that "today's euro strength is also a function of dollar weakness" due to recent weak data, compouned by Tuesday's fall in US consumer confidence figures, clouding the US economic outlook. Other analysts voiced scepticism that the EU can really find a solution to the Greek debt problems without triggering a default despite all the inventive ways of rolling over Athens' debt being mentioned. Greek lawmakers will vote on Wednesday and Thursday over major austerity plans that are aimed at unlocking 12 billion euros ($17 billion) of funds from the European Union and the International Monetary Fund. As parliament debated the measures, Greek unions launched a 48-hour general strike against the government's austerity drive, upping the stakes after sustained protests against the measures. In London late Tuesday, the euro changed hands at $1.4361 against $1.4277 late in New York on Monday, at 116.13 yen (115.51), £0.8967 (0.8929) and 1.1915 Swiss francs (1.1929). The dollar stood at 80.86 yen (80.90) and 0.8297 Swiss francs (0.8354). The pound was at $1.6013 (1.5987). On the London Bullion Market, gold edged up to $1,499 an ounce from $1,498 late Monday.