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Forex - EUR/USD steady, close to three-month high

Published 12/17/2012, 02:35 AM
Updated 12/17/2012, 02:36 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro was steady against the U.S. dollar on Monday, trading close to a three-month high, as signs of progress in tackling the euro zone's debt crisis supported the single currencey, while investors eyed ongoing U.S. budget talks.

EUR/USD hit 1.3144 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3155, easing 0.05%.

The pair was likely to find support at 1.3067, the low of December 14 and resistance at 1.3239, the high of May 2.

The euro continued to be supported by optimism over signs of headway in dealing with the debt crisis in the region after finance ministers agreed a deal on rules for supervising banks.

Ministers also released EUR49.1 billion of financial aid for Greece, after the country completed a scheme to buy back its debt from private investors last week.

Meanwhile, investor focus shifted back to negotiations to avoid the U.S. fiscal cliff following the central bank announcement, amid concerns that the automatic tax hikes and spending cuts due to take effect on January 1st could derail the U.S. recovery.

Elsewhere, the euro was fractionally lower against the pound with EUR/GBP inching down 0.09%, to hit 0.8131.

Later in the day, the U.S. was to publish official data on manufacturing activity in New York State, as well as a report on the balance of domestic and foreign investment in U.S. securities.


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