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Forex - EUR/USD holds steady near 2-year lows, Greece in focus

Published 12/29/2014, 02:30 AM
Euro remains near 2-year lows vs. dollar with focus on Greece
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Investing.com - The euro held steady against the U.S. dollar on Monday, hovering close to two-year lows as concerns over political instability in Greece persisted and as demand for the greenback remained broadly supported.

Trading volumes were expected to remain light this week ahead of the New Year's holiday.

EUR/USD hit 1.2167 during late Asian trade, the pair's lowest since August 2012; the pair subsequently consolidated at 1.2190.

The pair was likely to find support at 1.2132 and resistance at 1.2255, the high of December 25.

Markets were jittery as Greek Prime Minister Antonis Samaras was set to make a third and final attempt on Monday to get his candidate for president confirmed and avoid an early parliamentary election.

The prime minister received the backing of 168 lawmakers in the second vote on December 23, eight more than in the first presidential ballot on December 17.

After losing the first round, Samaras had asked lawmakers not to disrupt negotiations with creditors and offered to hold a parliamentary election at the end of next year.

Meanwhile, the dollar remained broadly supported after final data last week showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.

The strong data fuelled further optimism over the strength of the U.S. economic recovery and added to expectations for the Federal Reserve to raise interest rates next year.

The euro was also steady against the pound, with EUR/GBP dipping 0.06% to 0.7825.

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