Investing.com - The euro edged higher against the U.S. dollar on Wednesday, but remained close to a two-year low as the lack of substantial progress in tackling the euro zone’s sovereign debt crisis continued to weigh on market sentiment.
EUR/USD hit 1.2270 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2260, adding 0.09%.
The pair was likely to finds support at 1.2234, Tuesday’s low and a two-year low and resistance at 1.2332, Tuesday’s high.
The euro remained under pressure after the German Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
The court said a decision could take months rather than weeks due to the complexity of the ruling. Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
Meanwhile, the latest meeting of euro zone finance ministers also continued to weigh on investor confidence.
While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
Elsewhere, the euro was flat against the pound, hovering close to a three-and-a-half year low, with EUR/GBP trading at 0.7894.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.
EUR/USD hit 1.2270 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2260, adding 0.09%.
The pair was likely to finds support at 1.2234, Tuesday’s low and a two-year low and resistance at 1.2332, Tuesday’s high.
The euro remained under pressure after the German Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
The court said a decision could take months rather than weeks due to the complexity of the ruling. Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
Meanwhile, the latest meeting of euro zone finance ministers also continued to weigh on investor confidence.
While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
Elsewhere, the euro was flat against the pound, hovering close to a three-and-a-half year low, with EUR/GBP trading at 0.7894.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.