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Forex - EUR/USD steady close to 7-day high

Published 03/20/2012, 03:31 AM
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Investing.com - The euro was steady against the U.S. dollar on Tuesday, trading close to a seven-day high as the single currency remained supported after Greece concluded an auction to settle credit-default-swap contracts on its government bonds.
 
EUR/USD hit 1.3244 during late Asian trade, the session high; the pair subsequently consolidated at 1.3240, inching up 0.01%.
 
The pair was likely to find support at 1.3141, Monday’s low and short-term resistance at 1.3290, the high of March 8.
 
The auction on Monday was held to determine the payment on Greek credit default swaps, following the country’s debt restructuring deal with private creditors last month, which cut the value of Greek debt holdings by 53.5%.
 
The euro also found support after the European Central Bank said it did not buy any bonds under its bond buying program last week, indicating that the region’s bond market is beginning to show signs of stabilizing.
 
Earlier Tuesday, official data showed that German producer price inflation rose slightly less-than-expected in February, increasing by 0.4%, below expectations for a 0.5% gain, bringing the annualized rate of PPI to 3.2%, in line with expectations.
 
The euro pushed higher against the pound and the yen, with EUR/GBP easing up 0.07% to hit 0.8335 and EUR/JPY rising 0.09% to hit 110.43.
 
Later in the day, the U.S. was to produce official data on building permits and housing starts. Meanwhile, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.


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