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Forex - Euro extends gains vs. dollar on Greece progress

Published 12/03/2012, 07:48 AM
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Investing.com - The euro extended gains against the U.S. dollar on Monday, rising to a fresh six-week high as concerns over Greece eased after Athens announced the details of a debt buyback scheme.

EUR/USD hit 1.3050 during European afternoon trade, the pair’s highest since October 23; the pair subsequently consolidated at 1.3043, rising 0.44%.

The pair was likely to find support at 1.2967, Friday’s low and resistance at 1.3082, the high of October 22.

The euro strengthened broadly after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.

Euro zone finance ministers were to hold talks in Brussels later in the day to discuss the terms of the new Greek aid deal, after Germany’s parliament gave it the green light on Friday. The ministers were also to discuss details of a EUR10 billion bailout for Cyprus.

Elsewhere, data showed that the final euro zone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March, but remaining in contraction territory for the 16th consecutive month.

Germany’s final manufacturing PMI came in at 46.8 last month, up from 46.0 in October.

Earlier Monday, final data showed that China’s HSBC manufacturing PMI rose to 50.5 in November from 49.5 the previous month, indicating that economic activity is picking up.

The euro pushed higher against the pound, with EUR/GBP up 0.16% to 0.8110, and was little changed close to multi-month highs against the yen, with EUR/JPY edging up 0.04% to 107.15.

Later Monday, the Institute of Supply Management was to produce a report on manufacturing activity in the U.S.



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