Investing.com – The euro dipped against the U.S. dollar on Tuesday, easing back from a three-day high as investors remained cautious ahead of a vote by Greece’s parliament on an austerity package that is central to the country’s chances of accessing international aid.
EUR/USD pulled back from 1.4328, the pair’s highest since June 23, to hit 1.4273 during late Asian trade, dipping 0.09%.
The pair was likely to find support at 1.4101, Monday’s low and a seven day low and resistance at 1.4305, Friday’s high.
Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
Greece's Parliament is due to vote Wednesday on the EUR28.4 billion, five-year austerity package, followed by a vote Thursday on implementing the legislation. The plan must pass in order for Greece to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
Meanwhile, the euro was up against the pound, with EUR/GBP rising 0.17% to hit 0.8950.
Earlier Tuesday, a report showed that Germany's consumer climate outlook for July rose unexpectedly.
Market research group Gfk said its index of Germany's consumer climate rose to 5.7 in July from 5.5 in June. Analysts had expected the index to rise to 5.5.
EUR/USD pulled back from 1.4328, the pair’s highest since June 23, to hit 1.4273 during late Asian trade, dipping 0.09%.
The pair was likely to find support at 1.4101, Monday’s low and a seven day low and resistance at 1.4305, Friday’s high.
Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
Greece's Parliament is due to vote Wednesday on the EUR28.4 billion, five-year austerity package, followed by a vote Thursday on implementing the legislation. The plan must pass in order for Greece to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
Meanwhile, the euro was up against the pound, with EUR/GBP rising 0.17% to hit 0.8950.
Earlier Tuesday, a report showed that Germany's consumer climate outlook for July rose unexpectedly.
Market research group Gfk said its index of Germany's consumer climate rose to 5.7 in July from 5.5 in June. Analysts had expected the index to rise to 5.5.