Investing.com - The euro moved to a nearly three week high against the U.S. dollar Monday, as French Finance Minister Baroin revealed that Greece and its private creditors are making tangible progress.
EUR/USD broke the 1.3000 psychological resistance trading to a high of 1.3052 before falling back to 1.3008 up 0.60%.
The pair was likely to find support at 1.2838, the low of January 19 and technical resistance exists at 1.3131, the high of December 21.
The single currency gained strength as European Union leaders met in Brussels to discuss the Greek situation, budget rules and a financial firewall to protect indebted nations.
The Financial Times Deutschland reported that negotiators for Greece have broadly agreed on the terms of a debt swap. However, the parties are still trying to agree on coupons.
France's Finance Minister, Francois Baroin, stated that Greek debt negotiations are making tangible progress, while German Finance Minister, Wolfgang Schaeuble made clear that he is confident the will be completed.
However, bondholders negotiating the debt swap said they made their maximum offer leaving it up to the European Union and International Monetary Fund to decide whether or not to take the deal.
Michael Woolfok of Bank of New York Mellon Corp, expressed some caution about the move higher stating to Bloomberg, "The price action is putting the cart before the horse by assuming that since risky currencies and the euro are rallying that something is going to get done in Europe. There has been quite a sea change in the past couple of weeks; those who were talking about parity are eating their words."
The euro was also supported earlier when Germany auctioned off EUR2.54 billion of 12 month treasury bills to strong investor demand and very low yields
Elswhere, the Euro fell against the pound with EUR/GBP gaining 0.65% to 0.8356.
Investors are awaiting preliminary manufacturing and service sector data in the euro zone on Tuesday, as well as the Bank of Japan's interest rate statement and press conference.
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EUR/USD broke the 1.3000 psychological resistance trading to a high of 1.3052 before falling back to 1.3008 up 0.60%.
The pair was likely to find support at 1.2838, the low of January 19 and technical resistance exists at 1.3131, the high of December 21.
The single currency gained strength as European Union leaders met in Brussels to discuss the Greek situation, budget rules and a financial firewall to protect indebted nations.
The Financial Times Deutschland reported that negotiators for Greece have broadly agreed on the terms of a debt swap. However, the parties are still trying to agree on coupons.
France's Finance Minister, Francois Baroin, stated that Greek debt negotiations are making tangible progress, while German Finance Minister, Wolfgang Schaeuble made clear that he is confident the will be completed.
However, bondholders negotiating the debt swap said they made their maximum offer leaving it up to the European Union and International Monetary Fund to decide whether or not to take the deal.
Michael Woolfok of Bank of New York Mellon Corp, expressed some caution about the move higher stating to Bloomberg, "The price action is putting the cart before the horse by assuming that since risky currencies and the euro are rallying that something is going to get done in Europe. There has been quite a sea change in the past couple of weeks; those who were talking about parity are eating their words."
The euro was also supported earlier when Germany auctioned off EUR2.54 billion of 12 month treasury bills to strong investor demand and very low yields
Elswhere, the Euro fell against the pound with EUR/GBP gaining 0.65% to 0.8356.
Investors are awaiting preliminary manufacturing and service sector data in the euro zone on Tuesday, as well as the Bank of Japan's interest rate statement and press conference.
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