Investing.com - The euro traded lower against the U.S. dollar Wednesday, on reports that the European Union is considering delaying the second Greek bailout until the general election.
EUR/USD hit a low of 1.3059 and a high of 1.3191 during the volatile trading session.
The pair was likely to find support at 1.3027, the low of February 6 and technical resistance exists at 1.3191, the session’s high.
The single currency weakened after a report surfaced that EU officials are trying to delay Greece’s second bailout amid concerns that Greek leaders are not fully committed to implementing the required austerity measures.
Without a bailout, Greece faces a default when a EUR14.5 billion bond comes due on March 20.
However, euro zone finance ministers cancelled a meeting with Greece officials today to sign off on the second Greek bailout package, after failing to obtain assurances from Athens that the austerity measures will be implemented.
Ministers are expected to hold a teleconference ahead of the official meeting rescheduled for Monday.
In euro zone positive news, the head of China’s central bank stated that he believes the euro zone debt crisis can be solved. He vowed to become more involved in the debt crisis via facilities like the European Financial Stability Facility.
In addition, data showed that Germany’s economy fell less than expected 0.2% in the last three months of 2011, while France’s economy expanded 0.2% and Italy’s shrank by 0.7%.
The euro was higher against the pound with EUR/GBP giving back 0.33% to trade at 0.8340.
In the U.S., manufacturing in the New York region expanded at the fastest rate since June 2010 in February.
However, another report indicated that industrial production in the U.S. was surprisingly flat in January.
Investors are awaiting the Federal Reserve’s policy meeting minutes later in the session.
EUR/USD hit a low of 1.3059 and a high of 1.3191 during the volatile trading session.
The pair was likely to find support at 1.3027, the low of February 6 and technical resistance exists at 1.3191, the session’s high.
The single currency weakened after a report surfaced that EU officials are trying to delay Greece’s second bailout amid concerns that Greek leaders are not fully committed to implementing the required austerity measures.
Without a bailout, Greece faces a default when a EUR14.5 billion bond comes due on March 20.
However, euro zone finance ministers cancelled a meeting with Greece officials today to sign off on the second Greek bailout package, after failing to obtain assurances from Athens that the austerity measures will be implemented.
Ministers are expected to hold a teleconference ahead of the official meeting rescheduled for Monday.
In euro zone positive news, the head of China’s central bank stated that he believes the euro zone debt crisis can be solved. He vowed to become more involved in the debt crisis via facilities like the European Financial Stability Facility.
In addition, data showed that Germany’s economy fell less than expected 0.2% in the last three months of 2011, while France’s economy expanded 0.2% and Italy’s shrank by 0.7%.
The euro was higher against the pound with EUR/GBP giving back 0.33% to trade at 0.8340.
In the U.S., manufacturing in the New York region expanded at the fastest rate since June 2010 in February.
However, another report indicated that industrial production in the U.S. was surprisingly flat in January.
Investors are awaiting the Federal Reserve’s policy meeting minutes later in the session.