Investing.com - The euro held gains against the U.S. dollar on Tuesday, as hopes that a debt restructuring deal for Greece could be reached by the end of the week lent support, but gains were capped amid concerns over Portugal’s debt load.
EUR/USD hit 1.3213 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.3186, gaining 0.33%.
The pair was likely to find support at 1.3076, Monday’s low and resistance at 1.3226, Monday’s high and a six-week high.
The euro gained ground against the greenback after Greek Prime Minister Lucas Papademos said Monday that negotiators had made "significant progress" in talks aimed at reaching a debt swap plan and aimed to have a definitive agreement by the end of this week.
Also Monday, European Union leaders agreed on a fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone that will come into force in July.
But the euro’s gains were capped by concerns over Portugal, as the yield on the country’s 10-year government bonds remained close to Monday’s euro-era highs at 16%, adding to concerns that Portugal may also need a debt restructuring deal.
Also Tuesday, official data showed that the number of unemployed people in Germany fell more-than-expected in January, while the country’s jobless rate dropped to a record low, easing concerns over the economic outlook for the region’s biggest economy.
The euro was lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8356.
Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country was also to publish a report on consumer confidence.
EUR/USD hit 1.3213 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.3186, gaining 0.33%.
The pair was likely to find support at 1.3076, Monday’s low and resistance at 1.3226, Monday’s high and a six-week high.
The euro gained ground against the greenback after Greek Prime Minister Lucas Papademos said Monday that negotiators had made "significant progress" in talks aimed at reaching a debt swap plan and aimed to have a definitive agreement by the end of this week.
Also Monday, European Union leaders agreed on a fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone that will come into force in July.
But the euro’s gains were capped by concerns over Portugal, as the yield on the country’s 10-year government bonds remained close to Monday’s euro-era highs at 16%, adding to concerns that Portugal may also need a debt restructuring deal.
Also Tuesday, official data showed that the number of unemployed people in Germany fell more-than-expected in January, while the country’s jobless rate dropped to a record low, easing concerns over the economic outlook for the region’s biggest economy.
The euro was lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8356.
Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country was also to publish a report on consumer confidence.