Forex - EUR/USD edges higher as Greece deal awaited

Published 02/02/2012, 02:36 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro inched higher against the U.S. dollar on Thursday, after a string of solid economic data on Wednesday eased concerns over the outlook for the global economy and boosted demand for higher yielding assets.

EUR/USD hit 1.3196 during late Asian trade, the session high; the pair subsequently consolidated at 1.3192, gaining 0.25%.

The pair was likely to find support at 1.3041, Tuesday’s low and resistance at 1.3232, last Friday’s high and a six-week high.

Market sentiment firmed up on Wednesday, after manufacturing data from Germany, the U.S. and China remained resilient, while expectations that the Federal Reserve will keep rates on hold for another two years weighed on the greenback.  

The euro was also supported by indications that negotiations with Greece’s creditors are very close to being finalized, but concerns have persisted that a debt swap deal with the country’s private bondholders will not go far enough to reduce the country’s debt load.

The euro was also slightly higher against the pound, with EUR/GBP rising 0.08% to hit 0.8318.

Later in the day, France and Spain were to hold auctions of government debt, with Spain offering as much as EUR4.5 billion in short to medium term debt and France offering up to EUR8 billion.

Meanwhile, Fed Chairman Ben Bernanke was to testify before the House of Representatives budget committee. The U.S. was also to produce government data on initial jobless claims.


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