Investing.com - The euro rose against the dollar on Tuesday as reports emerged that Greece and its private creditors are closer to reaching a deal to restructure the country's debt after talks stalled late last week.
EUR/USD hit 1.3025 in early Asian trading on Tuesday, up 0.09%, up from a session low of 1.3008 and off from a high of 1.3029.
The pair sought to test support at 1.2883, Monday's low, and resistance at 1.3052, Monday's high.
"There's a tremendous amount of expectation in the market that this (Greek deal) is going to get done and relieve some uncertainty," said Boris Schlossberg, head of research at GFT Forex in Jersey City, N.J., according to Reuters.
"That's triggered a huge amount of short covering flows in Europe."
Both parties are said to have largely agreed on the broader terms of a restructuring but are down to details such coupons paid to lenders.
Turnout at a German bond auction pleased the markets as well.
The euro was up against the pound as well as the yen, with EUR/GBP gaining 0.01% to 0.8361 and EUR/JPY rising 0.01% to 100.24.
The Federal Reserve meets this week to discuss monetary policy and may hint at further loose monetary policies, including quantitative easing, even if it leaves rates unchanged.
Investors are awaiting eurozone preliminary manufacturing and service sector data as well as the Bank of Japan's interest rate statement and press conference.
In Canada, core retail sales figures will hit the wire, while Bank of England Governor Mervyn King is due to speak.
EUR/USD hit 1.3025 in early Asian trading on Tuesday, up 0.09%, up from a session low of 1.3008 and off from a high of 1.3029.
The pair sought to test support at 1.2883, Monday's low, and resistance at 1.3052, Monday's high.
"There's a tremendous amount of expectation in the market that this (Greek deal) is going to get done and relieve some uncertainty," said Boris Schlossberg, head of research at GFT Forex in Jersey City, N.J., according to Reuters.
"That's triggered a huge amount of short covering flows in Europe."
Both parties are said to have largely agreed on the broader terms of a restructuring but are down to details such coupons paid to lenders.
Turnout at a German bond auction pleased the markets as well.
The euro was up against the pound as well as the yen, with EUR/GBP gaining 0.01% to 0.8361 and EUR/JPY rising 0.01% to 100.24.
The Federal Reserve meets this week to discuss monetary policy and may hint at further loose monetary policies, including quantitative easing, even if it leaves rates unchanged.
Investors are awaiting eurozone preliminary manufacturing and service sector data as well as the Bank of Japan's interest rate statement and press conference.
In Canada, core retail sales figures will hit the wire, while Bank of England Governor Mervyn King is due to speak.