Forex - EUR/USD trims losses but Greek concerns persist

Published 02/06/2012, 10:24 AM
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Investing.com - The euro trimmed losses against the U.S. dollar on Monday, but the single currency remained under pressure as the lack of progress in debt talks between Greece and private creditors continued to weigh on market sentiment.

EUR/USD pulled back from 1.3029, the pair’s lowest since February 1, to hit 1.3073 during U.S. morning trade, still down 0.65%.

The pair was likely to find support at 1.2982, the low of December 19 and resistance at 1.3183, the high of January 26.

Greece failed to meet another deadline Monday to strike a deal to secure a much needed EUR130 billion bailout, pushing the country closer to a default. 

A European Commission spokesman said earlier that Greece needed urgently to take decisions, while French and German leaders warned the country that time was running out and that Athens would only get bailout money from Europe if it lived up to its promise to deliver economic reforms in return.

The single currency found brief support earlier after official data showed that German factory orders rose more-than-expected in December, on the back of increased demand from outside the euro zone, easing concerns over a slowdown in the region’s largest economy.

Meanwhile, the euro was also lower against the pound with EUR/GBP shedding 0.55%, to hit 0.8277.

Also Monday, German Chancellor Merkel said it was important to see progress on Greece in "the next few days", and insisted that Greece must decide whether it remains in the euro zone.


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