Investing.com - The euro remained steady against the U.S. dollar on Monday, ahead of a meeting of the eurogroup of euro zone finance ministers later in the session to discuss unlocking Greece’s next tranche of aid.
EUR/USD hit 1.2739 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2713, inching up 0.04%.
The pair was likely to find near-term support at 1.2689, Friday’s low and a two-month low and resistance at 1.2789, Friday’s high.
Greece’s government approved a budget of spending cuts and tax increases for 2013 late Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Earlier Monday, the German finance ministry said that no decision on the Greek bailout program was expected, despite the budget agreement.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Overall market sentiment remained subdued amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Markets shrugged off data showing that Japan’s economy contracted by an annualized 3.5% in the third quarter, but the data underlined concerns over a slowdown in global growth.
The report was offset by official data from China over the weekend showing that exports increased by 11.6% from a year earlier in October, while the trade surplus widened to the largest in almost four years.
The euro edged higher against the pound, with EUR/GBP easing up 0.13% to 0.8006 and remained little changed against the yen, with EUR/JPY inching up 0.02% to 101.02.
Also Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.
EUR/USD hit 1.2739 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2713, inching up 0.04%.
The pair was likely to find near-term support at 1.2689, Friday’s low and a two-month low and resistance at 1.2789, Friday’s high.
Greece’s government approved a budget of spending cuts and tax increases for 2013 late Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Earlier Monday, the German finance ministry said that no decision on the Greek bailout program was expected, despite the budget agreement.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Overall market sentiment remained subdued amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Markets shrugged off data showing that Japan’s economy contracted by an annualized 3.5% in the third quarter, but the data underlined concerns over a slowdown in global growth.
The report was offset by official data from China over the weekend showing that exports increased by 11.6% from a year earlier in October, while the trade surplus widened to the largest in almost four years.
The euro edged higher against the pound, with EUR/GBP easing up 0.13% to 0.8006 and remained little changed against the yen, with EUR/JPY inching up 0.02% to 101.02.
Also Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.