Investing.com - The euro traded higher Monday against the U.S. dollar on Greece approving austerity measures needed to qualify for a euro zone economic bailout package.
EUR/USD pulled back from a high of 1.3284 to trade at 1.3209 during U.S. midsession trade.
The pair was likely to find support at 1.3088, Wednesday’s low and technical resistance exists at 1.3320, the high of February 9.
The single currency found support when Greek Prime Minister, Lucas Papademos obtained parliamentary approval for the spending cuts by a vote of 199 to 74 for the austerity plans.
Euro zone finance ministers are meeting on February, 15 to decide whether or not Greece should be approved for its second economic bailout package.
Germany and European Commission appear pleased with the austerity plans, increasing hopes that the bailout will be approved.
However, Greece needs to make a strong argument how EUR325 million of this year’s total budget cuts will be achieved before the bailout package will be approved.
Greeks are burning buildings and rioting in Athens while protesting the wage, pension and job cuts in the austerity package.
Meanwhile, Italian borrowing costs declined at a debt auction today. Italy’s treasury sold EUR8.5 billion 365 day bills and EUR3.5 billion 127 day bills at lower rates than previous sales.
In German news, the euro zone’s largest economy sold EUR3.01 billion of six month bills at an average yield of 0.0761%, up from a negative yield at a sale held on January 9.
Earlier, Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20. The investment bank expects government budget controls to result in a region wide recession.
The euro was lower against the pound with EUR/GBP slipping 0.05% to trade at 0.8372.
EUR/USD pulled back from a high of 1.3284 to trade at 1.3209 during U.S. midsession trade.
The pair was likely to find support at 1.3088, Wednesday’s low and technical resistance exists at 1.3320, the high of February 9.
The single currency found support when Greek Prime Minister, Lucas Papademos obtained parliamentary approval for the spending cuts by a vote of 199 to 74 for the austerity plans.
Euro zone finance ministers are meeting on February, 15 to decide whether or not Greece should be approved for its second economic bailout package.
Germany and European Commission appear pleased with the austerity plans, increasing hopes that the bailout will be approved.
However, Greece needs to make a strong argument how EUR325 million of this year’s total budget cuts will be achieved before the bailout package will be approved.
Greeks are burning buildings and rioting in Athens while protesting the wage, pension and job cuts in the austerity package.
Meanwhile, Italian borrowing costs declined at a debt auction today. Italy’s treasury sold EUR8.5 billion 365 day bills and EUR3.5 billion 127 day bills at lower rates than previous sales.
In German news, the euro zone’s largest economy sold EUR3.01 billion of six month bills at an average yield of 0.0761%, up from a negative yield at a sale held on January 9.
Earlier, Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20. The investment bank expects government budget controls to result in a region wide recession.
The euro was lower against the pound with EUR/GBP slipping 0.05% to trade at 0.8372.