Forex - EUR/USD trading in tight range ahead of key E.U. meeting

Published 11/16/2010, 06:35 AM
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Investing.com – The euro was trading in a narrow range against the U.S. dollar on Tuesday, swinging between small gains and losses ahead of the conclusion of a key meeting of European Union finance ministers in Brussels.

EUR/USD hit 1.3635 during European morning trade, the daily high; the pair subsequently consolidated at 1.3584, shedding 0.01%

The pair was likely to find support at 1.3435, the low of September 27 and resistance at 1.3749, Monday’s high.

Euro zone finance ministers were meeting to find a way to end Ireland's debt crisis, with Dublin resisting pressure to seek a state bailout by signaling that only its banks may need help.

Ireland has come under increasing pressure from euro zone counterparts to take funds from the European Financial Stability Facility.

In an interview with The Wall Street Journal, Portuguese Finance Minister Fernando Teixeira dos Santos said doubts over Ireland’s ability to meet sovereign-debt obligations have had a contagion effect on Portugal.

“I would not want to lecture the Irish government on that,” the minister said. “I want to believe they will decide to do what is most appropriate together for Ireland and the euro”.

Meanwhile, the euro was up against the pound, with EUR/GBP gaining 0.31% to hit 0.8489.

Earlier Tuesday, data showed that the ZEW index of German consumer sentiment unexpectedly jumped in November, rising to 1.8 from -7.2 in October. That was in excess of an expected increase to -5.9.

The current conditions index also came in better than expected, up to 81.5 from 72.6 in October, beating expectations of an increase to 76.3.

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