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Forex - EUR/USD steady as focus turns to Fed statement

Published 01/25/2012, 02:16 AM
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Investing.com - The euro was steady against the U.S. dollar on Wednesday, as talks to reach a deal to restructure Greek sovereign debt stalled while markets eyed the Federal Reserve’s rate statement later in the day.

EUR/USD hit 1.3016 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3030, edging down 0.04%.

The pair was likely to find support at 1.2952, Tuesday’s low and resistance at 1.3131, the high of December 20.

Greece was clinging on Tuesday to hope of a last minute bond swap deal to avoid a default after euro zone officials rejected a final offer from the country's private bondholders.

A Greek official said the country had the euro zone's support to complete the debt swap talks in the "coming days." Meanwhile, International Monetary Fund chief Christine Lagarde said she remained positive that a deal could still be reached.

Elsewhere, ending a two-day policy meeting, the Fed was to announce the federal funds rate and publish its official rate statement.

The euro was higher against the pound with EUR/GBP adding 0.09%, to hit 0.8350.

Later in the day, the Ifo Institute was to publish a report on German business climate, while European Central Bank President Mario Draghi was due to speak.

In the U.S., industry data was to be released on pending home sales, as well as official data on crude oil stockpiles.

Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.


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