Investing.com – The euro erased losses against the U.S. dollar on Thursday, rebounding from a daily low amid hopes that Greece would stave off a short-term default but the single currency remained vulnerable amid worries that the debt crisis may spread to the region’s core economies.
EUR/USD clawed back up from 1.3704, the daily low; to hit 1.3802 during European early afternoon trade, gaining 0.34%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3936, the high of September 9.
The euro found support after the European Union economic and monetary affairs commissioner Olli Rehn said earlier that Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
Meanwhile, Spain’s Treasury sold EUR3.95 billion of long term bonds in an auction which attracted solid investor demand. The auction came after Italy saw the yield demanded to hold its sovereign debt surge to euro-era highs on Tuesday.
The single currency remained under pressure amid speculation that Moody’s may downgrade its rating of Italian sovereign debt later this week.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8720.
Later Thursday, Federal Reserve Chairman Ben Bernanke was to speak, while the U.S. was to publish a string of data, with government reports on consumer price inflation and initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.
EUR/USD clawed back up from 1.3704, the daily low; to hit 1.3802 during European early afternoon trade, gaining 0.34%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3936, the high of September 9.
The euro found support after the European Union economic and monetary affairs commissioner Olli Rehn said earlier that Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
Meanwhile, Spain’s Treasury sold EUR3.95 billion of long term bonds in an auction which attracted solid investor demand. The auction came after Italy saw the yield demanded to hold its sovereign debt surge to euro-era highs on Tuesday.
The single currency remained under pressure amid speculation that Moody’s may downgrade its rating of Italian sovereign debt later this week.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8720.
Later Thursday, Federal Reserve Chairman Ben Bernanke was to speak, while the U.S. was to publish a string of data, with government reports on consumer price inflation and initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.