Investing.com - The euro was higher against the U.S. dollar on Wednesday, lifted by hopes that Greece can deliver on a pledge to implement harsh austerity measures while comments from the head of China’s central bank also lent support.
EUR/USD hit 1.3191 during late Asian trade, the session high; the pair subsequently consolidated at 1.3175, gaining 0.32%.
The pair was likely to find support at 1.3079, Tuesday’s low and a one-week low and resistance at 1.3283, Monday’s high.
The euro found support after the Governor of the People’s Bank of China Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
But concerns over the threat of a default by Greece continued after euro zone finance ministers cancelled a meeting planned for later Wednesday to sign off on Greece’s bailout, after failing to receive assurances on how the country plans to implement austerity measures approved in a parliamentary vote on Sunday.
The ministers were expected to instead hold a teleconference later in the day and meet next Monday.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.14% to hit 0.8379.
Also Wednesday, preliminary data showed that Germany’s economy contracted less-than-expected in the final three months of 2011, shrinking by a seasonally adjusted 0.2%, slight better than expectations for a contraction of 0.3%.
Year-on-year, German GDP expanded at an annualized rate of 1.5%, after rising at a rate of 2.5% in the previous quarter and below expectations for a 1.8% expansion.
EUR/USD hit 1.3191 during late Asian trade, the session high; the pair subsequently consolidated at 1.3175, gaining 0.32%.
The pair was likely to find support at 1.3079, Tuesday’s low and a one-week low and resistance at 1.3283, Monday’s high.
The euro found support after the Governor of the People’s Bank of China Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
But concerns over the threat of a default by Greece continued after euro zone finance ministers cancelled a meeting planned for later Wednesday to sign off on Greece’s bailout, after failing to receive assurances on how the country plans to implement austerity measures approved in a parliamentary vote on Sunday.
The ministers were expected to instead hold a teleconference later in the day and meet next Monday.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.14% to hit 0.8379.
Also Wednesday, preliminary data showed that Germany’s economy contracted less-than-expected in the final three months of 2011, shrinking by a seasonally adjusted 0.2%, slight better than expectations for a contraction of 0.3%.
Year-on-year, German GDP expanded at an annualized rate of 1.5%, after rising at a rate of 2.5% in the previous quarter and below expectations for a 1.8% expansion.