Investing.com - The euro was lower but steady against the dollar on Wednesday as investors continued to stock up on greenback positions mainly as Greece struggled to piece together a government.
In Asian trading on Wednesday, EUR/USD was trading down 0.09% at 1.2994, up from a session low of 1.2990, and off from a high of 1.3008.
The pair was likely to test support at 1.2962, the low of May 7, and resistance at 1.3066, the high of May 7.
Over the weekend in Greece, the country's leading political parties failed to muster 50% of the votes in parliamentary elections, with fringe parties garnering more votes than expected.
Election results reflected growing anger in the country over austerity, which fueled fears Greece may ditch belt-tightening measures and abandon the euro down that road, which could roil currency markets.
The country's political parties were still trying to form a coalition government, although new elections seemed increasingly likely.
Greece is scheduled to receive fresh bailout money from rescue funds arranged by the European Commission, the European Central Bank and the International Monetary Fund in June, and fears continued to build the country would not have a government in place by then.
Meanwhile in France, market talk says incoming president Francois Hollande, a socialist, won't reverse as many policies as his predecessor Nicolas Sarkozy as once feared, yet his insistence that France must prioritize growth over cutting spending continued to pressure the euro down on fears tensions with Germany over fiscal matters could build.
German production data prevented the euro from falling too far.
German industrial output jumped 2.8% in March, well above expectations for an 0.8% increase, after declining 0.3% in February.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.02% at 0.8048 and EUR/JPY trading down 0.09% at 103.79.
Later Wednesday in the U.S., the government will release data on crude oil stockpiles.
The country is also to hold a 10-year government bond auction.
In Asian trading on Wednesday, EUR/USD was trading down 0.09% at 1.2994, up from a session low of 1.2990, and off from a high of 1.3008.
The pair was likely to test support at 1.2962, the low of May 7, and resistance at 1.3066, the high of May 7.
Over the weekend in Greece, the country's leading political parties failed to muster 50% of the votes in parliamentary elections, with fringe parties garnering more votes than expected.
Election results reflected growing anger in the country over austerity, which fueled fears Greece may ditch belt-tightening measures and abandon the euro down that road, which could roil currency markets.
The country's political parties were still trying to form a coalition government, although new elections seemed increasingly likely.
Greece is scheduled to receive fresh bailout money from rescue funds arranged by the European Commission, the European Central Bank and the International Monetary Fund in June, and fears continued to build the country would not have a government in place by then.
Meanwhile in France, market talk says incoming president Francois Hollande, a socialist, won't reverse as many policies as his predecessor Nicolas Sarkozy as once feared, yet his insistence that France must prioritize growth over cutting spending continued to pressure the euro down on fears tensions with Germany over fiscal matters could build.
German production data prevented the euro from falling too far.
German industrial output jumped 2.8% in March, well above expectations for an 0.8% increase, after declining 0.3% in February.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.02% at 0.8048 and EUR/JPY trading down 0.09% at 103.79.
Later Wednesday in the U.S., the government will release data on crude oil stockpiles.
The country is also to hold a 10-year government bond auction.