Investing.com - The euro held gains against the U.S. dollar on Tuesday, but investors remained jittery ahead of a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde to discuss Greece’s bailout.
EUR/USD hit 1.2809 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.2789, rising 0.19%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month trough and resistance at 1.2891, the high of September 13, 2010.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
The euro found support earlier after ratings agency Fitch said that France, the euro zone's second largest economy, would not be downgraded in 2012.
But the shared currency remained under pressure as borrowing costs for Italy and Spain remained elevated, with the yield on 10-year Italian government bonds lodged above the 7% threshold seen as unsustainable at 7.15%, while the yield on Spanish 10-year bonds was at 5.57%.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.04% to hit 0.8261.
Also Tuesday, official data showed that French industrial production rose 1.1% in November, defying expectations for no change.
EUR/USD hit 1.2809 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.2789, rising 0.19%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month trough and resistance at 1.2891, the high of September 13, 2010.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
The euro found support earlier after ratings agency Fitch said that France, the euro zone's second largest economy, would not be downgraded in 2012.
But the shared currency remained under pressure as borrowing costs for Italy and Spain remained elevated, with the yield on 10-year Italian government bonds lodged above the 7% threshold seen as unsustainable at 7.15%, while the yield on Spanish 10-year bonds was at 5.57%.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.04% to hit 0.8261.
Also Tuesday, official data showed that French industrial production rose 1.1% in November, defying expectations for no change.