Forex - EUR/USD holds steady as market braces for key data

Published 11/13/2012, 08:10 PM
Updated 11/13/2012, 08:11 PM
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Investing.com - The euro held steady against the dollar on Wednesday as investors remained on edge before the release of industrial production data in Europe and retail sales in the U.S.

Hopes Greece will soon tap bailout money gave the currency support.

In Asian trading on Wednesday, EUR/USD was trading up 0.04% at 1.2709, up from a session low of 1.2707, and off from a high of 1.2717.

The pair was likely to find support at 1.2662, Tuesday’s low, and resistance at 1.2777, Thursday’s high.

Later Wednesday, the eurozone will release official data on industrial production, a leading indicator of economic health, and investors remained eager to see how the continent's major areas of output have been battling strengthening headwinds.

In the U.S. later Wednesday, the country will release data on retail sales, which will not only serve as a barometer for the country's all-important consumer sector but will also provide insight to the damage Superstorm Sandy inflicted on the economy.

The euro found support after German newspaper Bild reported that Greece could receive EUR44 billion in various financial aid packages bundled together in one lump sum, citing German government sources.

Greece recently approved a new budget and a string of austerity measures to appease creditors, though eurozone policymakers have yet to disburse aid, and until that money hits Greek coffers, trading will remain edgy.

Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20, with a EUR31.5 billion tranche of aid pending approval.

Meanwhile, Greece placed EUR4.06 billion in short-term government debt earlier, money that will help Athens to repay EUR5 billion in debt maturing on Friday.

Elsewhere in Europe, the ZEW Centre for Economic Research reported earlier that its index of German economic sentiment fell to -15.7 in November from October’s reading of -11.5.

Analysts had expected the index come in at -9.8 this month.

The report mentioned that "recessionary developments" in the eurozone should dampen German growth in the next six months.

Meanwhile, mounting concerns over the U.S. fiscal cliff continued to bolster demand for the greenback.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8006, and EUR/JPY trading up 0.23% at 101.06.

Elsewhere on Wednesday, the U.S. is to produce government data on producer price inflation and business inventories.

In addition, the Federal Reserve is to publish the minutes of its most recent policy-setting meeting.








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