Forex - EUR/USD firms as economic fears ebb

Published 03/25/2012, 07:37 PM
Updated 03/25/2012, 07:38 PM
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Investing.com - The euro gained against the dollar on Monday as the European economy enjoyed some breathing room after containing its debt crisis even if just for now, while the market still viewed U.S. housing data with a little caution.

In Asian trading on Monday, EUR/USD hit 1.3280, up 0.07%, up from a session low of 1.3265 and off from a high of 1.3281.

The pair was likely to find support at 1.3191, Friday's low and resistance at 1.3293, Friday's high.

European government bond auctions have gone rather smoothly lately, and Greece's private-sector debt restructuring is now complete, giving the euro a chance to strengthen somewhat after sustaining losses stemming from recent Greece uncertainty.

Meanwhile in the U.S., housing data recently came in a little weaker than expected, with the Commerce Department reporting Friday that new single-family home sales fell 1.6% percent to a seasonally adjusted 313,000-unit annual rate in the U.S.

January's figures were revised down to 318,000 units from a previous 321,000 reading.

Serious headwinds still face the eurozone economy, although the currency took a breather in early Asian trading and firmed against the greenback.

With Greece at ease, markets will turn their attention to Spain and Portugal.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8364 and EUR/JPY up 0.31% at 109.62.

On Monday, ECB President Mario Draghi is due to speak in public, as is Federal Reserve Chairman Ben Bernanke.

Also on Monday, the German Ifo Business Climate Index will be released.






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