Forex - EUR/USD steady on euro zone firewall hopes

Published 03/29/2012, 03:38 AM
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Investing.com - The euro was steady against the U.S. dollar on Thursday, supported by hopes that euro zone leaders will increase the size of the European debt firewall to combat the fiscal crisis.
 
EUR/USD hit 1.3346 during late Asian trade, the session high; the pair subsequently consolidated at 1.3320, inching up 0.03%.
 
The pair was likely to find support at 1.3276, Wednesday’s low and resistance at 1.3384, Tuesday’s high and a one-month high.
 
Euro zone finance ministers are to hold talks in Copenhagen on Friday to discuss running the region’s EUR500 billion permanent bailout fund, the European Stability Mechanism, in conjunction with EUR200 billion from the region’s temporary fund.
 
Earlier in the week, German Chancellor Angela Merkel bowed to pressure to support an enlarged firewall, following calls from the International Monetary Fund to bolster the region’s bailout capacity amid mounting concerns over Portugal and Spain.
 
The euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8378 and fell against the yen, with EUR/JPY shedding 0.55% to hit 109.78.
 
Later in the day, Germany was to publish official data on employment change, while the U.S. was to release official data on initial jobless claims.


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