Investing.com - The euro weakened against the dollar on Friday as investors sold the unit for profits after posting gains in several recent sessions.
Debt restructuring talks between Greece and its private creditors have been going on for days now, and the market is growing a little impatient with the pace of negotiations, which also pressured the euro downward.
EUR/USD hit 1.2931 in mid-session U.S. trading on Friday, down 0.29%, up from a session low of 1.2887 and off from a high of 1.2986.
The pair sought to test support at 1.2734, Wednesday's low, and resistance at 1.2986, the earlier session high.
"The euro had a very, very strong rally over the last three days on the assumption that the Greek deal is going to be done," said Boris Schlossberg, director of research at online currency trader GFT Forex in New York, according to Bloomberg.
"The fact that it’s going into the third day created a little bit of concern and people took profit ahead of the $1.30 level."
Greece is holding talks with private creditors with the aim of working out terms needed to restructure the country's debt.
Greece has to strike a deal with creditors if it wants to tap fresh bailout money and avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
Still, hope remains both sides can come to a deal.
"There could be a pre-agreement tonight, but technical discussions with the lawyers will likely continue over the week-end and next week," a source close to talks told Reuters.
Events in Europe dominated the mood of the trading day, eclipsing a U.S. National Association of Realtors report that December existing home sales rose 5 percent to a seasonally adjusted annual rate of 4.61 million units, which fell short of market expectations for 4.65 million.
Meanwhile, the euro was down against both the pound and the yen, with EUR/GBP falling 0.51% to 0.8331 and EUR/JPY falling 0.35% at 99.65.
Investors will keep a close eye on the Greek debt restructuring talks over the weekend and next week, the Federal Reserve Open Market Committee will meet to discuss the future of U.S. monetary policy.
Talk or even hints of loose policies such as quantitative easing, which are asset purchases from banks with freshly minted money, could move markets worldwide.
On Sunday, Japan will release trade balance numbers.
European consumer confidence numbers come out on Monday, while the Bank of Japan will hold a monetary policy meeting as well.
Debt restructuring talks between Greece and its private creditors have been going on for days now, and the market is growing a little impatient with the pace of negotiations, which also pressured the euro downward.
EUR/USD hit 1.2931 in mid-session U.S. trading on Friday, down 0.29%, up from a session low of 1.2887 and off from a high of 1.2986.
The pair sought to test support at 1.2734, Wednesday's low, and resistance at 1.2986, the earlier session high.
"The euro had a very, very strong rally over the last three days on the assumption that the Greek deal is going to be done," said Boris Schlossberg, director of research at online currency trader GFT Forex in New York, according to Bloomberg.
"The fact that it’s going into the third day created a little bit of concern and people took profit ahead of the $1.30 level."
Greece is holding talks with private creditors with the aim of working out terms needed to restructure the country's debt.
Greece has to strike a deal with creditors if it wants to tap fresh bailout money and avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
Still, hope remains both sides can come to a deal.
"There could be a pre-agreement tonight, but technical discussions with the lawyers will likely continue over the week-end and next week," a source close to talks told Reuters.
Events in Europe dominated the mood of the trading day, eclipsing a U.S. National Association of Realtors report that December existing home sales rose 5 percent to a seasonally adjusted annual rate of 4.61 million units, which fell short of market expectations for 4.65 million.
Meanwhile, the euro was down against both the pound and the yen, with EUR/GBP falling 0.51% to 0.8331 and EUR/JPY falling 0.35% at 99.65.
Investors will keep a close eye on the Greek debt restructuring talks over the weekend and next week, the Federal Reserve Open Market Committee will meet to discuss the future of U.S. monetary policy.
Talk or even hints of loose policies such as quantitative easing, which are asset purchases from banks with freshly minted money, could move markets worldwide.
On Sunday, Japan will release trade balance numbers.
European consumer confidence numbers come out on Monday, while the Bank of Japan will hold a monetary policy meeting as well.