Investing.com – The euro erased losses against the U.S. dollar on Tuesday, pulling away from the days low as risk appetite revived, but gains were limited amid ongoing worries over the financial crisis in the single currency bloc.
EUR/USD pulled back from 1.3592, the daily low, to hit 1.3691 during European early afternoon trade, inching up 0.03%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3720, Monday’s high.
The common currency found support after Greece fully paid EUR769 million in bond coupons and after Japan indicated that it may buy more bonds issued by the euro zone’s bailout fund.
In an interview with the Wall Street Journal, Japanese Prime Minister Yoshihiko Noda said Tokyo was open to buying more bonds issued by the European Financial Stability Facility, in an effort to support and stabilize European markets.
The euro weakened broadly earlier after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing a weak outlook for economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to qualify for its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
The euro was largely unchanged after a report showing that the ZEW Institute's German economic sentiment index declined last month.
The euro was also slightly higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8718.
Meanwhile, investors were beginning focus on the upcoming two-day meeting of the U.S. Federal Reserve, amid speculation that the central bank could implement fresh easing measures to shore up growth.
EUR/USD pulled back from 1.3592, the daily low, to hit 1.3691 during European early afternoon trade, inching up 0.03%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3720, Monday’s high.
The common currency found support after Greece fully paid EUR769 million in bond coupons and after Japan indicated that it may buy more bonds issued by the euro zone’s bailout fund.
In an interview with the Wall Street Journal, Japanese Prime Minister Yoshihiko Noda said Tokyo was open to buying more bonds issued by the European Financial Stability Facility, in an effort to support and stabilize European markets.
The euro weakened broadly earlier after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing a weak outlook for economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to qualify for its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
The euro was largely unchanged after a report showing that the ZEW Institute's German economic sentiment index declined last month.
The euro was also slightly higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8718.
Meanwhile, investors were beginning focus on the upcoming two-day meeting of the U.S. Federal Reserve, amid speculation that the central bank could implement fresh easing measures to shore up growth.