Forex - EUR/USD trims losses on hopes of ECB action

Published 08/24/2012, 11:44 AM
Updated 08/24/2012, 11:46 AM
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Investing.com - The euro traded lower against the dollar on Friday but trimmed losses on renewed hopes the European Central Bank will take steps to lower government bond yields in countries such as Spain.

In U.S. trading on Friday, EUR/USD was trading down 0.14% at 1.2547, up from a low of 1.2484 and off from a high of 1.2567.

The pair was likely to find support at 1.2484, the earlier low, and resistance at 1.2567, the earlier high.

Market talk began to build that the European Central Bank may consider capping yields in eurozone sovereign debt.

The ECB would carry out such a policy via buying sovereign bonds in the open market, which sent the euro reversing earlier losses.

The single currency fell earlier as markets awaited the results of a series of high-level meetings in Europe.

German Chancellor Angela Merkel and French President Francois Hollande will meet with Greek Prime Minster Antonis Samaras, who is seeking more time to overhaul Greece's economy.

Merkel has said Greece must stick with austerity measures in exchange for bailout money while Samaras has insisted the country does not want more money but rather, more time to breath.

Also keeping the euro lower, the Financial Times Deutschland reported that a German working group was studying the possible scenarios of a Greek exit from the eurozone.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.08% at 0.7928, and EUR/JPY trading up 0.07% at 98.69.








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