Investing.com - The euro plunged against the U.S. dollar Tuesday, as Greek debt talks failed to reach a solution despite stronger than forecasted euro zone PMI data.
EUR/USD traded to a high of 1.3063 and posted a low of 1.2954. It is currently trading at 1.3013, break even on the session
The pair was likely to find support at 1.2874, Monday's low and technical resistance exists at 1.3063, the sessions high.
The single currency gained strength as preliminary euro zone data indicated that manufacturing activity climbed at the fastest pace since August.
However, the exuberance was quickly overshadowed when news of an impasse in the Greek debt talks hit the wire.
The rumors of a Greek debt agreement yesterday were proven wrong as finance ministers failed to agree on a debt deal and called for a greater contribution from bondholders.
Yves Maillot of Robeco Gestions explained to Bloomberg, It seems we are far from an agreement. The problem of solvency of countries remains, along with the Greek situation."
Officials at the meeting in Brussels yesterday scoffed at putting up more money for Greece, calling on bondholders to provide debt relief.
However, Greek Finance Minister Evangelo Venizelo remains confident by stating that the Greek government intends to wrap up the debt swap talks with private creditors by February 1.
The euro's decline was tempered by a report indicating industrial new orders declined at a slower pace than expected in the European region.
The Euro fell against the pound with EUR/GBP giving back 0.22% to 0.8342.
Investors are awaiting U.K. GDP data as well as mortgage approvals and the Bank of England's meeting minutes. In the U.S., housing market data, crude oil stockpiles and the federal fund rate are on the agenda Wednesday.
n other news, the World Economic Forum begins its annual five day meeting in Davos, Switzerland tomorrow.
EUR/USD traded to a high of 1.3063 and posted a low of 1.2954. It is currently trading at 1.3013, break even on the session
The pair was likely to find support at 1.2874, Monday's low and technical resistance exists at 1.3063, the sessions high.
The single currency gained strength as preliminary euro zone data indicated that manufacturing activity climbed at the fastest pace since August.
However, the exuberance was quickly overshadowed when news of an impasse in the Greek debt talks hit the wire.
The rumors of a Greek debt agreement yesterday were proven wrong as finance ministers failed to agree on a debt deal and called for a greater contribution from bondholders.
Yves Maillot of Robeco Gestions explained to Bloomberg, It seems we are far from an agreement. The problem of solvency of countries remains, along with the Greek situation."
Officials at the meeting in Brussels yesterday scoffed at putting up more money for Greece, calling on bondholders to provide debt relief.
However, Greek Finance Minister Evangelo Venizelo remains confident by stating that the Greek government intends to wrap up the debt swap talks with private creditors by February 1.
The euro's decline was tempered by a report indicating industrial new orders declined at a slower pace than expected in the European region.
The Euro fell against the pound with EUR/GBP giving back 0.22% to 0.8342.
Investors are awaiting U.K. GDP data as well as mortgage approvals and the Bank of England's meeting minutes. In the U.S., housing market data, crude oil stockpiles and the federal fund rate are on the agenda Wednesday.
n other news, the World Economic Forum begins its annual five day meeting in Davos, Switzerland tomorrow.