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Forex - EUR/USD extends rally after Papandreou remarks

Published 06/21/2010, 03:17 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro extended its rally against the U.S. dollar on Monday, after Greek prime minister, George Papandreou, said investors would soon have their confidence in the euro zone restored.

EUR/USD hit 1.2466 during late Asian trade, the pair's highest since May 24; the pair subsequently consolidated at around 1.2455, gaining 0.54%.

The pair is likely to find support at 1.2115, the low of June 14, and resistance at 1.2562, the high of May 25.

While speaking on Sunday, Papandreou said that Greece is ahead of the deficit target of 8.1% for this year and that tax increases are boosting revenue. He also indicated that the Greek economy may not now shrink as much as previously believed.

Meanwhile, the euro was down against the pound, with EUR/GBP shredding 0.03% to hit 0.8354.

Later in the day, the president of the European Central Bank, Jean-Claude Trichet was due to testify before the European Parliament in Brussels. Traders were likely scrutinizing his comments for clues to future shifts in monetary policy.

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