Forex - EUR/USD steady amid "fiscal cliff" jitters

Published 12/28/2012, 02:45 AM
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Investing.com - The euro was steady against the U.S. dollar on Friday, as investors remained cautious ahead of a last round of U.S. budget negotiations to try to avoid an imminent fiscal crisis.

EUR/USD hit 1.3256 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3248, inching up 0.08%.

The pair was likely to find support at 1.3172, the low of December 26 and resistance at 1.3308, the high of December 19.

U.S. President Barack Obama was to meet congressional leaders later Friday at the White House for last-minute talks on a "fiscal cliff" deal to avoid automatic tax increases and broad spending cuts that threaten the US economy's recovery.

The meeting comes just four days before the government goes over the so-called fiscal cliff, assuming no deal is reached.

Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

Elsewhere, the euro was steady against the pound with EUR/GBP dipping 0.07%, to hit 0.8216.

Later in the day, France was to release official data on consumer spending.

The U.S. was to publish data on pending home sales, as well as a report on business conditions in the Chicago area and official data on crude oil stockpiles and natural gas inventories.


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