Investing.com - The euro remained lower against the U.S. dollar on Wednesday, as concerns over a lack of progress on restructuring Greece’s debt weighed, while investors turned their attention to a rate statement by the Federal Reserve later in the day.
EUR/USD hit 1.2931 during U.S. morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2965, shedding 0.54%.
The pair was likely to find support at 1.2874, Monday’s low and resistance at 1.3062, Tuesday’s high and an almost three-week high.
Debt-strapped Greece was clinging to hope of a last minute bond swap deal to avoid a default after euro zone officials rejected a final offer from the country's private bondholders on Tuesday.
Reports that the European Central Bank is opposed to restructuring its Greek holdings added to concerns over a possible default.
Elsewhere, the cost of insuring Portuguese government debt against default rose to a euro-lifetime high earlier, amid renewed fears the country may need a second international bailout.
The euro rose to a session high against the greenback earlier after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
In the U.S., industry data showed that pending home sales fell more-than-expected in December, after rising to a 19-month high the previous month.
The National Association of Realtors said its pending home sales index fell by 3.5% in December, disappointing market expectations for a 1.0% drop.
Pending home sales rose by an unrevised 7.3% in November.
The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8317.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement
EUR/USD hit 1.2931 during U.S. morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2965, shedding 0.54%.
The pair was likely to find support at 1.2874, Monday’s low and resistance at 1.3062, Tuesday’s high and an almost three-week high.
Debt-strapped Greece was clinging to hope of a last minute bond swap deal to avoid a default after euro zone officials rejected a final offer from the country's private bondholders on Tuesday.
Reports that the European Central Bank is opposed to restructuring its Greek holdings added to concerns over a possible default.
Elsewhere, the cost of insuring Portuguese government debt against default rose to a euro-lifetime high earlier, amid renewed fears the country may need a second international bailout.
The euro rose to a session high against the greenback earlier after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
In the U.S., industry data showed that pending home sales fell more-than-expected in December, after rising to a 19-month high the previous month.
The National Association of Realtors said its pending home sales index fell by 3.5% in December, disappointing market expectations for a 1.0% drop.
Pending home sales rose by an unrevised 7.3% in November.
The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8317.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement