Investing.com – The euro was up against the U.S. dollar on Wednesday, bouncing back from a 5-day low to hit a fresh daily high, ahead of the release of key German data on the country’s trade balance.
EUR/USD hit a 5-day low of 1.2676 during late Asian trade, before erasing losses to hit a daily high of 1.2714; the pair subsequently consolidated at 1.2711, gaining 0.24%.
The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2875, Tuesday’s high.
On Tuesday, a report from the Wall Street Journal reignited fears over the health of euro zone banks, as it raised doubts over the results of July’s euro zone stress tests of major banks. The report said the tests "minimised" the banks debt risks and "understated some lenders' holdings of potentially risky government debt".
A separate report from Germany’s Banking Association added to fears after it said Germany’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.
The euro was also up against the pound, with EUR/GBP gaining 0.10% to hit 0.8267.
Later in the day, both Germany and France are expected to produce key data on their trade balance. Germany is also due to release important information on industrial product, while the French government is slated to publish its budget balance.
EUR/USD hit a 5-day low of 1.2676 during late Asian trade, before erasing losses to hit a daily high of 1.2714; the pair subsequently consolidated at 1.2711, gaining 0.24%.
The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2875, Tuesday’s high.
On Tuesday, a report from the Wall Street Journal reignited fears over the health of euro zone banks, as it raised doubts over the results of July’s euro zone stress tests of major banks. The report said the tests "minimised" the banks debt risks and "understated some lenders' holdings of potentially risky government debt".
A separate report from Germany’s Banking Association added to fears after it said Germany’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.
The euro was also up against the pound, with EUR/GBP gaining 0.10% to hit 0.8267.
Later in the day, both Germany and France are expected to produce key data on their trade balance. Germany is also due to release important information on industrial product, while the French government is slated to publish its budget balance.