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Forex - EUR/USD rises to 2-month high on Greece optimism

Published 02/09/2012, 02:22 AM
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Investing.com - The euro rose to a two-month high against the U.S. dollar on Thursday, amid hopes Greece was coming closer to a bailout deal although coalition leaders stopped short of signing off on austerity measures.

EUR/USD hit 1.3313 during late Asian trade, the pair’s highest since December 12; the pair subsequently consolidated at 1.3301, adding 0.31%.

The pair was likely to find support at 1.3211, the low of November 25 and resistance at 1.3398, the high of November 28.

Following discussions on Wednesday, Greek political leaders agreed on all points of a bailout package except on pension cuts. Officials said talks with international lenders would continue so a deal could be concluded before a meeting of euro zone finance ministers later in the day.

Greece needs to finalize a debt restructuring deal by early March as part of an agreement to receive a EUR130 billion bailout package.

Meanwhile, markets were also eyeing the European Central Bank’s policy meeting later Thursday. The ECB was expected to keep interest rates on hold at 1% but could signal it is ready to cut rates in March.

Elsewhere, the euro was also higher against the pound with EUR/GBP rising 0.14%, to hit 0.8394.

Later in the day, the ECB was to announce its benchmark interest rate, followed by a press conference, while the U.S. was to publish government data on unemployment claims.


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