Investing.com – The euro erased losses against the U.S. dollar on Wednesday, pulling back from the daily low as comments by the president of the European Commission offered hopes of progress in resolving the debt crisis in the euro zone.
EUR/USD rebounded from 1.3592, the daily low, to hit 1.3714 during European late morning trade, climbing 0.27%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3738, Tuesday’s high.
European Commission President Jose Manuel Barroso said the commission would soon present options for the introduction of euro area bonds, through which the 17 euro zone member states could jointly issue debt.
However, he warned that the measure alone would not be enough to end the region’s debt crisis and reiterated that Germany remained strongly opposed to the move.
The euro weakened earlier after ratings agency Moody’s cut the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.
Later in the day, Greek Prime Minister George Papandreou was expected to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy, to discuss developments in Greece.
The euro was also higher against the pound, with EUR/GBP rising 0.16% to hit 0.8682.
Also Wednesday, the U.S. was to produce official data on producer price inflation and retail sales.
EUR/USD rebounded from 1.3592, the daily low, to hit 1.3714 during European late morning trade, climbing 0.27%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3738, Tuesday’s high.
European Commission President Jose Manuel Barroso said the commission would soon present options for the introduction of euro area bonds, through which the 17 euro zone member states could jointly issue debt.
However, he warned that the measure alone would not be enough to end the region’s debt crisis and reiterated that Germany remained strongly opposed to the move.
The euro weakened earlier after ratings agency Moody’s cut the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.
Later in the day, Greek Prime Minister George Papandreou was expected to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy, to discuss developments in Greece.
The euro was also higher against the pound, with EUR/GBP rising 0.16% to hit 0.8682.
Also Wednesday, the U.S. was to produce official data on producer price inflation and retail sales.