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Forex - Euro rebound against dollar stalls at 1.3598

Published 03/02/2010, 10:37 AM
EUR/USD
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EUR/JPY
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Investing.com – The euro's rebound against the U.S. dollar stalled at 1.3598 on Tuesday, after the European Commission said Greece must take further steps to to reach this year's deficit-cutting target. 

EUR/USD hit 1.3598 after rebounding from a fresh 9-month low at 1.3434 earlier in the day; it subsequently pulled back to 1.3525, shedding 0.26%.

The pair was likely to find resistance at 1.3691, last Tuesday's high, and support at 1.3212, the low of May 4. 

The euro's rebound against the yen also faltered on Tuesday; EUR/JPY later fell back to 120.44, losing 0.34%.

On Monday, Economic and Monetary Affairs Commissioner Olli Rehn discussed with Greek authorities the need for additional deficit-cutting measures.           

Commission spokesman Amadeu Altafaj was quoted by Reuters as saying on Tuesday that no bailout plans were discussed, but "both parties understand ... there is a need for additional measures and these should be presented as soon as possible... in order to make sure that the target of 4 percent is reached." 

Earlier in the day, the European Union's statistics agency, Eurostat, said the euro zone's PPI stood at 0.7% in January, compared with December last year, as expected. 

In a separate report, Eurostat said the 16-nation region's annual rate for CPI in February was 0.9%, according to a flash estimate, lower than economists' forecast of 1%.

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