Forex - EUR/USD steady amid ongoing European uncertainty

Published 07/10/2012, 07:03 PM
Updated 07/10/2012, 07:05 PM
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Investing.com - The euro traded steady to lower against the dollar in early Asian trading on Wednesday as investors mainly opted for the safe-haven greenback until clear policiy decisions emerge to determine whether Europe is further on its way to recovering.

In Asian trading on Wednesday, EUR/USD was trading down 0.01% at 1.2249, up from a session low of 1.2236 and off from a high of 1.2334.

The pair was likely to find support at 1.2236, the earlier low, and resistance at 1.2334, the earlier high.

The market awaited a German court to rule on whether the country's laws complied with eurozone bailout plans and budget rules, which kept the currency largely lower.

The euro saw some support from a meeting of eurozone finance ministers, where policymakers decided to allocate EUR30 billion in aid for Spain to prop up its banking sector by the end of the month.

Eurozone finance ministers also approved plans to give Spain an extra year to meet deficit-reduction targets, with the deadline now set at 2014.

However, the group has yet to give eurozone bailout funds the green light to invest in Spanish and Italian bond auctions, which kept borrowing costs high in those countries and further kept the euro at bay against the greenback.

In the U.S., the Federal Reserve will release the minutes of its most recent monetary policy meeting later Wednesday, which kept investors on the sidelines in early Asian trading.

The euro, meanwhile, was up slightly against the pound and down against the yen, with EUR/GBP up 0.01% at 0.7895 and EUR/JPY trading down 0.03% at 97.27.

In the eurozone later Wednesday, Germany will hold a 10-year government bond auction.
 
The U.S. is to release official data on its trade balance, its latest figures on crude oil stockpiles, followed by the minutes of the Federal Reserve’s most recent monetary policy meeting.









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