Forex - EUR/USD remains lower on Greece concerns

Published 02/06/2012, 07:41 AM
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Investing.com – The euro remained lower against the U.S. dollar on Monday, as the deadline for Greece to decide whether it can accept the proposed terms of a new bailout package passed, but robust Germany manufacturing data lent some support.

EUR/USD hit 1.3031 during European early afternoon trade, the pair’s lowest since February 1; the pair subsequently consolidated at 1.3067, shedding 0.68%.

The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3130, the session high.

Earlier in the day, the European Commission said Greece has gone beyond the deadline for finalizing talks on a second bailout package from the euro zone and the International Monetary Fund and warned that Athens urgently needs to take a decision.

Greek political leaders were holding talks in Athens to discuss whether they can agree to conditions meet the requirements for a EUR130 billion aid package.

The euro found some support following official data showing that German factory orders rose more-than-expected in December, on the back of increased demand from outside the euro zone.

Orders rose by 1.7%, after falling by an upwardly revised 4.9% in November, surpassing expectations for a 0.7% increase.

The euro was also down against the pound, with EUR/GBP shedding 0.40% to hit 0.8288.

Also Monday, the IMF said that its forecast for economic growth in China of 8.2% this year could be cut almost in half if the debt crisis in the euro zone worsens, a scenario the IMF says would warrant “significant” fiscal stimulus from the nation’s government.


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