Investing.com - The euro rose to an eight-day high against the U.S. dollar on Tuesday, as sentiment strengthened after Greece secured a new bailout but gains were limited by uncertainty over the country’s ability to meet the terms of the deal.
EUR/USD hit 1.3293 during late Asian trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.3254, adding 0.09%.
The pair was likely to find support at 1.3171, Monday’s low and resistance at 1.3351, the high of November 25.
At a meeting on Monday, euro zone finance ministers agreed on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
However, even with the agreement, economists remained uncertain over Greece's ability to pay off even its reduced debt burden. "It's not an easy program. It's a very ambitious program," said International Monetary Fund Director Christine Lagarde, following the meeting.
Meanwhile, the euro was also higher against the pound with EUR/GBP rising 0.17%, to hit 0.8368.
Also Tuesday, European Union finance ministers were scheduled to meet throughout the day.
EUR/USD hit 1.3293 during late Asian trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.3254, adding 0.09%.
The pair was likely to find support at 1.3171, Monday’s low and resistance at 1.3351, the high of November 25.
At a meeting on Monday, euro zone finance ministers agreed on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
However, even with the agreement, economists remained uncertain over Greece's ability to pay off even its reduced debt burden. "It's not an easy program. It's a very ambitious program," said International Monetary Fund Director Christine Lagarde, following the meeting.
Meanwhile, the euro was also higher against the pound with EUR/GBP rising 0.17%, to hit 0.8368.
Also Tuesday, European Union finance ministers were scheduled to meet throughout the day.