Forex - EUR/USD steady as Greece debt deal stalls

Published 01/24/2012, 02:35 AM
EUR/USD
-
EUR/GBP
-
Investing.com - The euro was steady against the U.S. dollar on Tuesday, after European finance ministers rejected a proposal by Greece’s creditors aimed at restructuring Greece’s debt in order to avert a default.

EUR/USD hit 1.2988 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3012, unchanged on the day.

The pair was likely to find support at 1.2874, Monday’s low and short-term resistance at 1.3052, Monday’s high and a 13-day high.

Following a meeting in Brussels, euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.

Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.

The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when a EUR14.4 billion bond redemption comes due on March 20.

The euro remained supported after Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swop to be struck "within days".

The euro was fractionally higher against the pound, with EUR/GBP inching up 0.06% to hit 0.8364.

Later in the day, the euro zone was to publish preliminary data activity in the manufacturing and service sectors, while France and Germany were to produce individual reports. The euro zone was also to release official data on industrial new orders.

Meanwhile, EU finance ministers were to hold discussions in Brussels throughout the day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.