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Forex - EUR/USD slides as market eyes Greece

Published 01/29/2012, 07:18 PM
Updated 01/29/2012, 07:21 PM
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Investing.com - The euro dipped against the dollar on Monday in choppy trading, as edgy market participants remained on the sidelines to see if Greece struck a deal to restructure its debts with private creditors.

EUR/USD hit 1.3204 in early Asian trading on Monday, down 0.12%, also a session low and off from a high of 1.3227.

The pair sought to test support at 1.3078, Friday's low, and resistance at 1.3234, Friday's high.

Greece has spent the past several weeks in talks with private lenders negotiating terms to restructure its debts and as of early Monday, a deal had yet to materialize.

Uncertainty sent the euro bouncing back and forth in both positive and negative territory before the bears won out, as the market waited for a definitive word that Greece has sealed a deal or suffered another setback.

Greece must reach an accord with its private lenders in order to secure the next tranche of bailout funds to prevent a sovereign debt default, as the country does not have enough money to cover a EUR14.5 billion bond repayment due March 20.

The market was also eager to see what E.U. leaders had planned for a Brussels economic summit, which began over the weekend.

The euro, meanwhile, was down against the pound as well as the yen, with EUR/GBP falling 0.07% to 0.8400 and EUR/JPY losing 0.04% at 101.34.

On top of keeping an eye on Greece and the E.U. economic summit, market watchers will monitor preliminary data on German consumer price inflation later Monday.

The U.S. is to publish government data on personal consumption expenditure, a leading indicator of inflation, followed by data on personal spending, the motor of the U.S. economy.





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