Early trade in New York: Euro rises

The euro rose on Tuesday on optimism Greece would pass a crucial austerity package needed to avert a debt default though further gains looked limited as uncertainty about a long-term solution remained. Traders said the euro could see a relief rally if the vote passes, though it could struggle to rise above its June high just below $1.47.
One-month implied euro/dollar volatility last traded around 13 percent. One-month 25-delta euro/dollar risk reversals, which measure the skew between euro puts and calls, traded around 2.6 in favour of puts, suggesting bearish sentiment on the euro. The euro climbed to an almost eight-week high of 89.80 pence. Sterling also fell to a 13-month low versus a currency basket. The dollar was flat at 80.86 yen, while it fell to a record low of 0.8276 Swiss franc.