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Forex - EUR/USD rallies over 1% on fresh Greece hopes, Fed

Published 03/20/2015, 10:59 AM
© Reuters.  Euro climbs higher vs. dollar on renewed optimism over Greece
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Investing.com - The euro rallied over 1% against the U.S. dollar on Friday, supported by fresh hopes Greece will secure the additional internation funds needed to avoid bankruptcy, while lessened expectations for a near-term U.S. rate hike continued to pressure the greenback lower.

EUR/USD hit 1.0818 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.0785, jumping 1.19%.

The pair was likely to find support at 1.0612, Thursday's low and resistance at 1.1032, the high of March 18.

The single currency found support after the European Commission said it made $2 billion of unused funds available to Greece to help the country avert a cash crunch.

The announcement came after Greek authorities said they were moving towards meeting the requirements of international creditors on a more detailed reform plan in order to secure the additional bailout funds required to prevent the country's bankruptcy.

European Union officials were set to continue discussions on the Greek bailout throughout the day.

Meanwhile, the dollar remained under pressure after the Fed indicated on Wednesday that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.

The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.

The euro was also higher against the pound, with EUR/GBP rising 0.30% to 0.7246.

In the U.K., the Office for National Statistics said that public sector net borrowing rose by £6.22 billion in February, less than the expected increase of £7.70 billion. January's figure was revised to a £8.93 billion drop from a previously estimated decline of £9.41 billion.

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