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Forex - EUR/USD little changed ahead of euro zone fin min meeting

Published 11/12/2012, 02:40 AM
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Investing.com - The euro was steady above a two-month low against the U.S. dollar on Monday, after Greece’s parliament approved a budget for 2013 on Sunday and investors eyed a meeting of euro zone finance ministers later in the session.

EUR/USD hit 1.2704 during late Asian trade, the session low; the pair subsequently consolidated at 1.2709, dipping 0.01%.

The pair was likely to find near-term support at 1.2689, Friday’s low and a two-month low and resistance at 1.2789, Friday’s high.

Greece’s government approved a budget of spending cuts and tax increases for next year, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.

The eurogroup of finance ministers were to hold talks in Brussels later Monday, to discuss unlocking Greece’s next tranche of aid.

Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.

Meanwhile, market sentiment was hit after official data showed that Japan’s economy contracted by 0.9% in the third quarter, as export demand weakened.

The euro was almost unchanged against the pound and the yen, with EUR/GBP dipping 0.02% to 0.7994 and EUR/JPY inching down 0.03% to 100.97.




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