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The Swedish crown, down almost 7 percent this
year in the absence of progress from a leaden economy, took some
encouragement from a political deal that avoids an early
election and sidelines anti-immigration party Sweden Democrats.
That and speculation - quashed by the Swiss National Bank - that
the Swiss franc had traded beyond its 1.20 franc per euro cap
were the main points of interest over the Christmas holiday
period.
All eyes will be fixed on Monday on Greek MPs' third and final
chance to elect a new president and avert a snap election that
could bring to power the leftwing Syriza party, long opposed to
Greece's international bailout and the austerity it demands.
"The pain trade is clearly for this vote to fail. I think we
would get a fairly negative reaction from the euro if that
happened," said Alvin Tan, a strategist with French bank Societe
Generale in London.
"I'm fairly sanguine about it to be honest. A lot of
parliamentarians had a chance to make a cheap point against the
government. Now the independents have to consider whether they
would really get elected again."
The previous round of voting just before Christmas saw Prime
Minister Antonis Samaras a dozen votes short of the number he
will need on Monday to elect a new president. Voting is due to
start at midday, with the result likely around an hour later.
The euro was steady at $1.2184 in early deals in Europe, within
touching distance of a more than two-year low of $1.2165 hit
before Christmas.
Activity in general was thin and is likely to remain that way
ahead of the New Year holiday with many investors having already
closed out their positions for the year. Japanese markets will
be shut from Dec. 31-Jan. 2 and reopen on Jan. 5.
While investors are betting the euro will fall against the
dollar next year as speculation grows that the European Central
Bank will ease monetary policy more aggressively, it may not
depreciate at all against currencies of other major trading
partners. The single currency has fallen 11 percent this year
against the dollar.
(editing by John Stonestreet)
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