Investing.com - The euro held steady against the dollar on Wednesday as the market digested Tuesday's news that European finance officials voted in favor of aiding Greece with a EUR130 billion bailout package.
In Asian trading on Wednesday, EUR/USD hit 1.3236, up 0.02%, gaining from a session low of 1.3228 and off from a high of 1.3250.
The pair was likely to test support at 1.3182, Monday's low, and resistance at 1.3293, Tuesday's high.
While the world is relieved Greece will likely avoid a messy March default now that it has access to bailout funding, Greece's longer-term economic problems are not over, which prevented the euro from extending Tuesday's gains over to Wednesday at a more pronounced clip.
Under terms of the rescue package, Greece will see its debt fall to 120.5% of gross domestic product by 2020 from current levels of around 160%.
Private-sector creditors will take write-down on their bonds of more than 53% on a nominal basis, a move that should cut Greece's debt by EUR107 billion.
Still, Greece must implement the reforms to which it agreed to gain access to the bailout, which won't be an easy taks, and further assistance may be needed down the road.
The bailout package is, after all, the second one for the country.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP gaining 0.04% to 0.8389 and EUR/JPY up 0.10% at 105.64.
Later Wednesday, the eurozone is to release preliminary data on manufacturing and service sector activity as well as official data on industrial new orders, a key gauge of production.
Meanwhile, the Bank of England will unveil the minutes of its January policy-setting meeting.
Also Wednesday, the U.S. will release industry data on existing home sales, a leading indicator of demand in the housing market.
In Asian trading on Wednesday, EUR/USD hit 1.3236, up 0.02%, gaining from a session low of 1.3228 and off from a high of 1.3250.
The pair was likely to test support at 1.3182, Monday's low, and resistance at 1.3293, Tuesday's high.
While the world is relieved Greece will likely avoid a messy March default now that it has access to bailout funding, Greece's longer-term economic problems are not over, which prevented the euro from extending Tuesday's gains over to Wednesday at a more pronounced clip.
Under terms of the rescue package, Greece will see its debt fall to 120.5% of gross domestic product by 2020 from current levels of around 160%.
Private-sector creditors will take write-down on their bonds of more than 53% on a nominal basis, a move that should cut Greece's debt by EUR107 billion.
Still, Greece must implement the reforms to which it agreed to gain access to the bailout, which won't be an easy taks, and further assistance may be needed down the road.
The bailout package is, after all, the second one for the country.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP gaining 0.04% to 0.8389 and EUR/JPY up 0.10% at 105.64.
Later Wednesday, the eurozone is to release preliminary data on manufacturing and service sector activity as well as official data on industrial new orders, a key gauge of production.
Meanwhile, the Bank of England will unveil the minutes of its January policy-setting meeting.
Also Wednesday, the U.S. will release industry data on existing home sales, a leading indicator of demand in the housing market.