Forex - EUR/USD higher on Greek bailout optimism, China

Published 02/20/2012, 01:13 PM
Updated 02/20/2012, 01:14 PM
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Investing.com -  The euro traded higher against the U.S.dollar Monday, on Greek bailout optimism and China’s growth spurring bank action.
 
EUR/USD hit 1.3277 during U.S. early trade, the pairs highest since February 13. It subsequently consolidated at 1.3250. up 0.84%
 
The pair was likely to find support at 1.3154, the low of February 10 and technical resistance exists at 1.3320, the high of February 9.
 
The single currency found support as euro zone finance ministers met in Brussels today to hash out the terms of the Greek bailout package and weigh potential contributions from central banks.
 
The leaders also plan on launching a bond exchange with private investors to help avoid a Greek sovereign default.
 
German Finance Minister, Wolfgang Schaeuble stated, “We still have a bit of work to do. We’ve set out to wrap up the decision on a new aid program for Greece. I’m confident.”
 
Adding to the stock bullish environment,  China slashed the amount of cash that its banks must hold in reserves for the second time in three months.
 
This action is designed to spur lending and increase growth in the world’s second largest economy.
 
Chinese bank reserve requirements will fall 50 basis points on February 24.
 
Adding to the regional optimism, Germany’s central bank stated, in its February report that the outlook for the economy had improved.
 
The euro was higher against the pound with EUR/GBP climbing 0.66% to 0.8357.
 
Trade volumes are expected to stay light today as U.S. markets are closed due to the President`s Day holiday. 




 

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