Forexpros – The euro pulled back from a session high against the U.S. dollar on Tuesday, after Italian Prime Minister Silvio Berlusconi won a critical budget vote but lost the majority in parliament.
EUR/USD pulled back from 1.3844, the session high, to hit 1.3782 during U.S. morning trade, still up 0.04% on the day.
The pair was likely to find support at 1.3655, the low of November 3 and resistance at 1.3829, Monday’s high.
Prime Minister Berlusconi’s conservative government won a crunch vote on budget reforms, after the main opposition party abstained, but the prime minister lost his majority in parliament with 308 votes out of 630 in favor of the measures.
Ahead of the vote, Berlusconi remained defiant, resisting calls to step down as yields on Italian 10-year government bonds surged to euro-era highs.
Meanwhile, in Greece outgoing Prime Minister George Papandreou was expected to name former European Central Bank Vice President Lucas Papademos as prime minister of an interim government after days of talks between the Socialist government and the opposition over a new leader to head the government.
Elsewhere, the euro dipped against the pound, with EUR/GBP slipping 0.02% to hit 0.8577.
Also Tuesday, Finland’s prime minister called for stronger surveillance of troubled euro zone countries, ahead of a meeting of European Union finance ministers later in the day, saying they must present concrete plans on how they will balance their budgets.
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