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Forex - EUR/USD under pressure as Greece debt concerns weigh

Published 06/13/2011, 06:49 AM
EUR/USD
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EUR/CHF
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Investing.com – The euro was under pressure against the U.S. dollar on Monday, swinging between small gains and losses as European Union leaders seemed no closer to an agreement on a possible restructuring of Greece’s sovereign debt.

EUR/USD hit 1.4322 during European late morning trade, the pair’s lowest since June 2; the pair subsequently consolidated at 1.4356, easing up 0.06%.

The pair was likely to find support at 1.4256, the low of May 30 and resistance at 1.4550, last Friday’s high.

Over the weekend, Eurogroup chairman Jean-Claude Juncker said that Greece needed a "soft, voluntary restructuring" of its debt.

But the European Central Bank is opposed to proposals for a bond swap, with the bank’s head Jean-Claude Trichet arguing late last week that imposing losses on creditors would be the same as default.

Meanwhile, the greenback remained under pressure amid uncertainty over future U.S. monetary policy ahead of the end of the Federal Reserve’s quantitative easing program at the end of the month.

The euro fell to an all-time low against the Swiss franc, with EUR/CHF briefly touching 1.2003, the pair’s lowest since the launch of the singe currency in 1999.

Later in the day, ECB President Jean-Claude Trichet was to speak at an event in London.


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