Investing.com - The euro remained steady against the U.S. dollar on Tuesday, amid uncertainty over a deal to restructure Greek debt while upbeat euro zone PMI data and a well-received Spanish bond auction lent support to the single currency.
EUR/USD hit 1.2988 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3009, easing 0.03%.
The pair was likely to find support at 1.2911, the low of December 28 and resistance at 1.3118, the high of December 22.
On Monday, European Union finance ministers rejected demands by Greece’s creditors that new bonds to be issued in exchange for their existing Greek holdings will carry an interest rate of 4%, prolonging negotiations on the issue.
The euro found support earlier after preliminary data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, easing concerns over the impact of the region’s debt crisis on the economy.
Service sector activity in the euro zone accelerated to a five-month high in January.
However, a separate report showed that industrial new orders in the euro zone declined in November, albeit at a slower pace than expected.
Elsewhere, Spain auctioned EUR2.51 billion of short-term government debt earlier, in an auction which met with robust investor demand at sharply lower yields.
The auction came one day after the Bank of Spain said it expects the economy to contract by 1.5% this year and grow just 0.2% in 2013.
The single currency was fractionally lower against the pound with EUR/GBP dipping 0.09%, to hit 0.8351.
EU finance ministers were to continue to hold discussions in Brussels throughout the day.
EUR/USD hit 1.2988 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3009, easing 0.03%.
The pair was likely to find support at 1.2911, the low of December 28 and resistance at 1.3118, the high of December 22.
On Monday, European Union finance ministers rejected demands by Greece’s creditors that new bonds to be issued in exchange for their existing Greek holdings will carry an interest rate of 4%, prolonging negotiations on the issue.
The euro found support earlier after preliminary data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, easing concerns over the impact of the region’s debt crisis on the economy.
Service sector activity in the euro zone accelerated to a five-month high in January.
However, a separate report showed that industrial new orders in the euro zone declined in November, albeit at a slower pace than expected.
Elsewhere, Spain auctioned EUR2.51 billion of short-term government debt earlier, in an auction which met with robust investor demand at sharply lower yields.
The auction came one day after the Bank of Spain said it expects the economy to contract by 1.5% this year and grow just 0.2% in 2013.
The single currency was fractionally lower against the pound with EUR/GBP dipping 0.09%, to hit 0.8351.
EU finance ministers were to continue to hold discussions in Brussels throughout the day.