Investing.com - The euro was lower against the U.S. dollar on Wednesday, as market sentiment was hit by sustained concerns over talks to restructure Greek sovereign debt despite better-than-expected German Ifo data.
EUR/USD hit 1.2953 during European late morning trade, the pair’s lowest since January 23; the pair subsequently consolidated at 1.2963, shedding 0.56%.
The pair was likely to find support at 1.2874, the low of January 23 and resistance at 1.3062, Tuesday’s high.
Concerns over a potential Greek default resurfaced after talks on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The European Commission reiterated its commitment earlier to respect the size of euro zone taxpayers' contribution of up to EUR130 billion to the second Greek bailout.
The comments came after International Monetary Fund Managing Director Christine Lagarde said that Greece's public sector creditors may need to participate in restructuring its national debt if a haircut negotiated with private sector bondholders is not enough to make the debt load on Athens sustainable.
The euro briefly found support 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.
Meanwhile, the euro was lower against the pound with EUR/GBP declining 0.22%, to hit 0.8323.
Later in the day, the Federal Reserve was to announce the federal funds rate and publish its official rate statement. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
EUR/USD hit 1.2953 during European late morning trade, the pair’s lowest since January 23; the pair subsequently consolidated at 1.2963, shedding 0.56%.
The pair was likely to find support at 1.2874, the low of January 23 and resistance at 1.3062, Tuesday’s high.
Concerns over a potential Greek default resurfaced after talks on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The European Commission reiterated its commitment earlier to respect the size of euro zone taxpayers' contribution of up to EUR130 billion to the second Greek bailout.
The comments came after International Monetary Fund Managing Director Christine Lagarde said that Greece's public sector creditors may need to participate in restructuring its national debt if a haircut negotiated with private sector bondholders is not enough to make the debt load on Athens sustainable.
The euro briefly found support 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.
Meanwhile, the euro was lower against the pound with EUR/GBP declining 0.22%, to hit 0.8323.
Later in the day, the Federal Reserve was to announce the federal funds rate and publish its official rate statement. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.