Investing.com - The euro erased losses against the U.S. dollar on Friday, easing off four-month lows, as news of a deal between Cyprus and Greece eased concerns over the island's financial troubles.
EUR/USD pulled away from 1.2886, the session low, to hit 1.2949 during U.S. morning trade, advancing 0.38%.
The pair was likely to find support at 1.2844, the low of March 19 and resistance at 1.2995, the high of March 18.
The euro gained ground after Cyprus reportedly agreed with Greece on a takeover of the Greek units of Cypriot banks, which ended uncertainty over the fate of those operations.
The Cypriot parliament is scheduled to reconvene for emergency talks later Friday after the European Union issued it with an ultimatum to raise the EUR5.8 billion necessary for a EUR10 billion bailout package by next Monday.
Meanwhile, concerns over the deteriorating economic outlook for the euro zone also weighed, after data on Thursday showed an unexpected contraction in the German manufacturing sector.
Earlier Friday the Ifo Institute for Economic Research said Garmany's business climate index declined to 106.7 from a reading of 107.4, disappointing expectations for a rise to 107.6.
The euro was also higher against the pound with EUR/GBP rising 0.26%, to hit 0.8525.
EUR/USD pulled away from 1.2886, the session low, to hit 1.2949 during U.S. morning trade, advancing 0.38%.
The pair was likely to find support at 1.2844, the low of March 19 and resistance at 1.2995, the high of March 18.
The euro gained ground after Cyprus reportedly agreed with Greece on a takeover of the Greek units of Cypriot banks, which ended uncertainty over the fate of those operations.
The Cypriot parliament is scheduled to reconvene for emergency talks later Friday after the European Union issued it with an ultimatum to raise the EUR5.8 billion necessary for a EUR10 billion bailout package by next Monday.
Meanwhile, concerns over the deteriorating economic outlook for the euro zone also weighed, after data on Thursday showed an unexpected contraction in the German manufacturing sector.
Earlier Friday the Ifo Institute for Economic Research said Garmany's business climate index declined to 106.7 from a reading of 107.4, disappointing expectations for a rise to 107.6.
The euro was also higher against the pound with EUR/GBP rising 0.26%, to hit 0.8525.