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Forex - EUR/USD inches higher as EU summit awaited

Published 07/20/2011, 02:36 AM
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EUR/GBP
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Investing.com -The euro inched higher against the U.S. dollar on Wednesday, but gains were limited amid an air of caution ahead of a summit meeting of European Union leaders on Thursday, to discuss a new aid deal for Greece.

EUR/USD hit 1.4184 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4183, gaining 0.19%.

The pair was likely to find support at 1.4013, Monday’s low and resistance at 1.4281, the high of July 14.

On Tuesday, Greek Prime Minister George Papandreou said Europe’s leaders need to demonstrate that they can resolve Greece’s sovereign debt crisis to avoid a contagion to Italy and Spain.

However, German Chancellor Angela Merkel said Europe’s fiscal crisis can’t be solved in one go, damping expectations that euro zone leaders will resolve the region’s debt woes at the summit.

The euro was also higher against the pound, with EUR/GBP rising 0.13% to hit 0.8793.

Earlier Wednesday, official data showed that German producer price inflation rose broadly in line with market expectations in June.

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