Investing.com - The euro extended gains against the U.S. dollar on Monday, rising to a 13-day high amid newfound optimism over a potential agreement on terms for a Greek debt restructuring deal.
EUR/USD hit 1.3034 during U.S. morning trade, the pair’s highest since January 4; the pair subsequently consolidated at 1.3034, climbing 0.79%.
The pair was likely to find support at 1.2838, the low of January 19 and resistance at 1.3131, the high of December 21.
European Union finance ministers were holding talks in Brussels to discuss the terms of a proposed debt restructuring package for Greece, as well as the terms of a fiscal compact that was agreed upon in December.
Ahead of the talks, French Finance Minister Francois Baroin said a deal was taking shape.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avoid a default when an EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
The euro found support earlier after Germany auctioned EUR2.54 billion of 12-month Treasury bills at an auction which met with strong investor demand at very low yields.
Elsewhere, the single currency was sharply higher against the pound with EUR/GBP advancing 0.69%, to hit 0.8358.
Also Monday, the Bank of Spain said the country’s economy will fall back into recession this year with a contraction of 1.5%, but added that it expects the economy to make a modest rebound in 2013 with gross domestic product growth of 0.2%.
EUR/USD hit 1.3034 during U.S. morning trade, the pair’s highest since January 4; the pair subsequently consolidated at 1.3034, climbing 0.79%.
The pair was likely to find support at 1.2838, the low of January 19 and resistance at 1.3131, the high of December 21.
European Union finance ministers were holding talks in Brussels to discuss the terms of a proposed debt restructuring package for Greece, as well as the terms of a fiscal compact that was agreed upon in December.
Ahead of the talks, French Finance Minister Francois Baroin said a deal was taking shape.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avoid a default when an EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
The euro found support earlier after Germany auctioned EUR2.54 billion of 12-month Treasury bills at an auction which met with strong investor demand at very low yields.
Elsewhere, the single currency was sharply higher against the pound with EUR/GBP advancing 0.69%, to hit 0.8358.
Also Monday, the Bank of Spain said the country’s economy will fall back into recession this year with a contraction of 1.5%, but added that it expects the economy to make a modest rebound in 2013 with gross domestic product growth of 0.2%.