Forex - EUR/USD pares gains as markets eye E.Z. talks

Published 02/13/2012, 10:03 AM
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Investing.com - The euro pared gains against the U.S. dollar on Monday, pulling back from a session high as investors were concerned over Greece’s ability to implement its latest austerity measures in order to avoid a default.

EUR/USD pulled back from 1.3284, the daily high, to hit 1.3223 during U.S. morning trade, still up 0.19%.

The pair was likely to find support at 1.3088, the low of February 7 and resistance at 1.3320, the high of February 9.

The euro found support earlier as concerns over a Greek default eased after the country’s parliament voted a package of wage, pension and job cuts in order to help secure its second bailout package ahead of a March bond redemption.

Euro zone finance ministers are scheduled to meet on Wednesday to discuss the approval of Greece’s financial aid. However, Athens is expected to explain how EUR325 million of this year's total budget cuts will be achieved before the ministers agree to the 130 billion euro package.

Germany's finance minister, Wolfgang Schaeuble, said earlier in an interview with German newspaper Welt am Sonntag that Greek promises on austerity measures were no longer good enough because so many vows had been broken.

Meanwhile, the single currency was fractionally lower against the pound with EUR/GBP inching down 0.01%, to hit 0.8375.

Also Monday, Germany sold EUR3 billion of six-month bills at an average yield of 0.0761%, while Italy sold EUR8.5 billion of one-year bills at yields of 2.23%, down from 2.735% at a similar auction last month, plus another EUR3.5 billion of 127-day bills at just 1.5%, down from 1.64%.


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