Investing.com – The euro regained ground against the U.S. dollar on Thursday, rebounding from a session low as doubts over whether a planned referendum on Greece’s bailout deal will go ahead supported demand for the single currency.
EUR/USD pulled back from 1.3657 the session low, to hit 1.3798 during European late morning trade, rising 0.40%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3827, Wednesday’s high.
The euro found support after European officials said that the single currency bloc will survive; even if Greece's controversial referendum results in a call to exit the euro zone.
Earlier in the day, Greek Finance Minister Evangelos Venizelos said he was opposed to the planned referendum. Meanwhile, speculation that the vote could be cancelled mounted, ahead of a vote of confidence in Prime Minister George Papandreou’s government on Friday.
On Wednesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy told Greece it will not receive any more financial aid until it decides it wants to remain within the euro zone and warned that Greece will surrender all European aid if it votes against the bailout package agreed on last week.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.04% to hit 0.8623.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.
EUR/USD pulled back from 1.3657 the session low, to hit 1.3798 during European late morning trade, rising 0.40%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3827, Wednesday’s high.
The euro found support after European officials said that the single currency bloc will survive; even if Greece's controversial referendum results in a call to exit the euro zone.
Earlier in the day, Greek Finance Minister Evangelos Venizelos said he was opposed to the planned referendum. Meanwhile, speculation that the vote could be cancelled mounted, ahead of a vote of confidence in Prime Minister George Papandreou’s government on Friday.
On Wednesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy told Greece it will not receive any more financial aid until it decides it wants to remain within the euro zone and warned that Greece will surrender all European aid if it votes against the bailout package agreed on last week.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.04% to hit 0.8623.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.