Investing.com - The euro was down against the U.S. dollar on Monday, pulling away from a six-week high as investors sold the currency to lock in gains and awaited the conclusion of talks aimed at restructuring Greece’s debt.
EUR/USD hit 1.3136 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3156 shedding 0.47%.
The pair was likely to find support at 1.3077, Friday’s low and resistance at 1.3226, the session high and a six-week high.
The euro weakened as investors took profits after the currency rallied to six-week highs, while delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
Market sentiment was also dented after Greek Finance Minister Evangelos Venizelos on Sunday rejected a German proposal to have a European Union commission review the country’s budget policy.
Earlier Monday, German Finance Minister Wolfgang Schaeuble said in the Wall Street Journal that the euro zone may refuse to grant Greece a fresh bailout unless it convinces Europe that it can fully implement commitments attached to earlier bailout packages.
The euro was also lower against the pound, with EUR/GBP shedding 0.29% to hit 0.8380.
Later in the day, EU leaders were to hold a summit in Brussels, where they were expected to sign off on the implementation of the European Stability Mechanism, a EUR500 billion permanent euro zone bailout find, as well as a pact aimed at enforcing deficit control measures in the region.
Meanwhile, Italy was to auction as much as EUR8 billion in long term government debt, after the country received a two-notch downgrade from Fitch’s on Friday.
EUR/USD hit 1.3136 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3156 shedding 0.47%.
The pair was likely to find support at 1.3077, Friday’s low and resistance at 1.3226, the session high and a six-week high.
The euro weakened as investors took profits after the currency rallied to six-week highs, while delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
Market sentiment was also dented after Greek Finance Minister Evangelos Venizelos on Sunday rejected a German proposal to have a European Union commission review the country’s budget policy.
Earlier Monday, German Finance Minister Wolfgang Schaeuble said in the Wall Street Journal that the euro zone may refuse to grant Greece a fresh bailout unless it convinces Europe that it can fully implement commitments attached to earlier bailout packages.
The euro was also lower against the pound, with EUR/GBP shedding 0.29% to hit 0.8380.
Later in the day, EU leaders were to hold a summit in Brussels, where they were expected to sign off on the implementation of the European Stability Mechanism, a EUR500 billion permanent euro zone bailout find, as well as a pact aimed at enforcing deficit control measures in the region.
Meanwhile, Italy was to auction as much as EUR8 billion in long term government debt, after the country received a two-notch downgrade from Fitch’s on Friday.