Investing.com - The euro edged higher against the U.S. dollar on Thursday, but remained close to a three-and-a-half month low as political deadlock in Greece continued to threaten the country’s rescue deal and added to speculation that Athens may leave the euro zone.
EUR/USD hit 1.2956 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2950, adding 0.18%.
The pair was likely to find support at 1.2886, the low of January 20 and resistance at 1.2998, the high of December 30.
The euro remained under pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
But chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Investors also remained concerned over whether French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the crisis could spark tensions with Germany.
Elsewhere, the euro was trading close to a fresh three-and-a-half year low against the pound with EUR/GBP edging up 0.05%, to hit 0.8020.
Later in the day, France was to produce official data on industrial production, while the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
EUR/USD hit 1.2956 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2950, adding 0.18%.
The pair was likely to find support at 1.2886, the low of January 20 and resistance at 1.2998, the high of December 30.
The euro remained under pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
But chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Investors also remained concerned over whether French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the crisis could spark tensions with Germany.
Elsewhere, the euro was trading close to a fresh three-and-a-half year low against the pound with EUR/GBP edging up 0.05%, to hit 0.8020.
Later in the day, France was to produce official data on industrial production, while the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.