Investing.com - The euro extended gains against the U.S. dollar on Monday, as signs that euro zone finance ministers were about to sign off on Greece’s second bailout package supported demand for the single currency.
EUR/USD hit 1.3275 during European afternoon trade, the pair’s highest since February 13; the pair subsequently consolidated at 1.3259, climbing 0.91%.
The pair was likely to find support at 1.3154, the low of February 10 and resistance at 1.3320, the high of February 9.
Speaking ahead of a meeting of euro zone finance ministers set for later Monday, Greek Finance Minister Evangelos Venizelos said negotiations on the EUR130 billion bailout and a linked debt restructuring deal would continue until the last minute but added that Greece has met all the conditions demanded by its creditors.
“We expect the long period of uncertainty, that benefitted neither the Greek economy nor the euro zone overall, to end today”, Venizelos said.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Sentiment also improved after the German central bank said in its February report that the country’s economy will make a rapid return to growth this year, despite the debt crisis in the euro zone.
In addition, risk appetite strengthened after the People’s Bank of China said Saturday that it was to cut the reserve requirement ratios of major commercial lenders in an attempt to boost liquidity and spur growth in the world’s second largest economy.
The euro was also higher against the pound with EUR/GBP rising 0.72%, to hit 0.8363.
Trade volumes were expected to remain light on Monday, with markets in the U.S. remaining closed for the Presidents Day holiday.
EUR/USD hit 1.3275 during European afternoon trade, the pair’s highest since February 13; the pair subsequently consolidated at 1.3259, climbing 0.91%.
The pair was likely to find support at 1.3154, the low of February 10 and resistance at 1.3320, the high of February 9.
Speaking ahead of a meeting of euro zone finance ministers set for later Monday, Greek Finance Minister Evangelos Venizelos said negotiations on the EUR130 billion bailout and a linked debt restructuring deal would continue until the last minute but added that Greece has met all the conditions demanded by its creditors.
“We expect the long period of uncertainty, that benefitted neither the Greek economy nor the euro zone overall, to end today”, Venizelos said.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Sentiment also improved after the German central bank said in its February report that the country’s economy will make a rapid return to growth this year, despite the debt crisis in the euro zone.
In addition, risk appetite strengthened after the People’s Bank of China said Saturday that it was to cut the reserve requirement ratios of major commercial lenders in an attempt to boost liquidity and spur growth in the world’s second largest economy.
The euro was also higher against the pound with EUR/GBP rising 0.72%, to hit 0.8363.
Trade volumes were expected to remain light on Monday, with markets in the U.S. remaining closed for the Presidents Day holiday.