Forex - EUR/USD higher as Greece talks in focus

Published 01/18/2012, 02:33 AM
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Investing.com - The euro was higher against the U.S. dollar on Wednesday, ahead of the resumption of talks between Greek Prime Minister Lucas Papademos and the country’s creditors later in the day.

EUR/USD hit 1.2788 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2785, gaining 0.41%.

The pair was likely to find support at 1.2648, Tuesday’s low and resistance at 1.2844, the high of January 12.

Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.

Greece needs to secure an agreement on restructuring its debt in order to access new bailout funds and avert a default when an EUR14.4 billion bond redemption comes due on March 20.

Meanwhile, Portugal was due to auction as much as EUR2.5 billion of government debt, in the country’s largest bond auction since last year's bailout.

The euro was also higher against the pound, with EUR/GBP rising 0.18% to hit 0.8321.

Later in the day, the U.S. was to release official data on producer price inflation and industrial production.

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