Investing.com – The euro posted steady gains against the U.S. dollar on Tuesday, trading close to a three-day high, but further gains were capped amid ongoing uncertainty ahead of an emergency summit of euro zone leaders later in the week.
EUR/USD hit 1.4217 during U.S. morning trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.4207, gaining 0.68%.
The pair was likely to find support at 1.4013, Monday’s low and resistance at 1.4281, the high of July 14.
The single currency found support as yields on Italian and Spanish government bonds retreated slightly after rising sharply on Monday amid fears over sovereign debt contagion.
Meanwhile, Spain auctioned close to the targeted amount of EUR4.5 billion of 12 and 18-month Treasury bills, but at sharply higher borrowing costs than at a previous auction in June.
On Thursday, euro zone leaders were to meet in Brussels attempt to finalize a second EUR110 billion bailout for Greece and discuss the overall financial stability of the single currency bloc.
Elsewhere, a report by the ZEW Centre for Economic Research said its index of German economic sentiment fell more-than-expected in July, dropping for the fifth consecutive month, as concerns over sovereign debt levels in the euro zone weighed.
The euro was also higher against the pound, with EUR/GBP easing up 0.12% to hit 0.8799.
Also Tuesday, official data showed U.S. housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased.
EUR/USD hit 1.4217 during U.S. morning trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.4207, gaining 0.68%.
The pair was likely to find support at 1.4013, Monday’s low and resistance at 1.4281, the high of July 14.
The single currency found support as yields on Italian and Spanish government bonds retreated slightly after rising sharply on Monday amid fears over sovereign debt contagion.
Meanwhile, Spain auctioned close to the targeted amount of EUR4.5 billion of 12 and 18-month Treasury bills, but at sharply higher borrowing costs than at a previous auction in June.
On Thursday, euro zone leaders were to meet in Brussels attempt to finalize a second EUR110 billion bailout for Greece and discuss the overall financial stability of the single currency bloc.
Elsewhere, a report by the ZEW Centre for Economic Research said its index of German economic sentiment fell more-than-expected in July, dropping for the fifth consecutive month, as concerns over sovereign debt levels in the euro zone weighed.
The euro was also higher against the pound, with EUR/GBP easing up 0.12% to hit 0.8799.
Also Tuesday, official data showed U.S. housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased.