Investing.com – The euro edged higher against the U.S. dollar on Tuesday, as markets eyed a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later in the day to discuss Greece’s bailout.
EUR/USD hit 1.2797 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2784, rising 0.15%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month trough and resistance at 1.2891, the high of September 13, 2010.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Meanwhile, concerns over weakness in the euro zone banking sector continued after a report on Monday showed that overnight deposits at the European Central Bank hit a fresh record of EUR464 billion, indicating that banks in the region remain unwilling to lend to each other.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8264.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds climbed to 7.26%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.65%.
EUR/USD hit 1.2797 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2784, rising 0.15%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month trough and resistance at 1.2891, the high of September 13, 2010.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Meanwhile, concerns over weakness in the euro zone banking sector continued after a report on Monday showed that overnight deposits at the European Central Bank hit a fresh record of EUR464 billion, indicating that banks in the region remain unwilling to lend to each other.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8264.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds climbed to 7.26%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.65%.