Forex- EUR/USD eases higher in Greek talks anticipation

Investing.com - The euro eased higher against the U.S. dollar Monday, as euro zone finance ministers started talks in Brussels to determine the next tranche of Greek aid.

EUR/USD hit 1.2739 during U.S. trade, the session high; the pair subsequently consolidated at 1.2713, inching up 0.02%.

The pair was likely to find near-term support at 1.2689, Friday’s low and a two-month low and resistance at 1.2789, Friday’s high.

The euro found support after Greece’s government approved a budget of spending cuts and tax increases for 2013 late Sunday, just days after the parliament passed a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.

However,  investors remained cautious as the eurogroup of finance ministers met in Brussels to discuss whether to unlock Greece’s next installment of aid.

Expectations that a decision would be taken on Monday were low as the ministers awaited an economic progress report on Greece from the troika.

Meanwhile, lingering concerns over the U.S. fiscal cliff continued to underpin demand for the greenback.

Markets shrugged off data showing that Japan’s economy contracted by an annualized 3.5% in the third quarter, but the data underlined concerns over a slowdown in global growth.

The report was offset by official data from China over the weekend showing that exports increased by 11.6% from a year earlier in October, while the trade surplus widened to the largest in almost four years.

The euro pushed higher against the pound, with EUR/GBP rising 0.18% to 0.8010 and remained little changed against the yen, withEUR/JPY inching down 0.06% to 100.94.

In other news Monday, German Chancellor Angela Merkel travelled to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.