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25 Jan 2015
Greece: Syriza leading polls, EUR to open down
FXStreet (Buenos Aires) - The snap vote election developed this Sunday in Greece points to an overwhelming victory of the opposition party Syriza lead by Alexis Tsipras, as exit polls shows the party took around 35% compared to Samara’s New Democracy with around 29%.
According to Greece laws, the new Prime Minister needs at least 151 seats of the 300 the Parliament has to govern on its own. At this point, Syriza has not secured the required seats, but is quite close to. A victory from the anti-austerity party will have many implications being the most immediate, further EUR/USD slides which already falls in early interbank trading, quoting in its mid 1.11. But Syriza victory also increases the risk of a “Grexit”, since Tsipras has promised to “put an end to the devastating policies of the last five years.” The party plans to renegotiate the country’s debt, increase minimum wages and pension, and cut taxes among other measures.
According to Greece laws, the new Prime Minister needs at least 151 seats of the 300 the Parliament has to govern on its own. At this point, Syriza has not secured the required seats, but is quite close to. A victory from the anti-austerity party will have many implications being the most immediate, further EUR/USD slides which already falls in early interbank trading, quoting in its mid 1.11. But Syriza victory also increases the risk of a “Grexit”, since Tsipras has promised to “put an end to the devastating policies of the last five years.” The party plans to renegotiate the country’s debt, increase minimum wages and pension, and cut taxes among other measures.