Investing.com – The euro pared losses against the U.S. dollar on Wednesday, edging back from a 4-day low but a rise in longer-term U.S. Treasury yields continued to support the dollar.
EUR/USD clawed up from 1.3179, the pair’s lowest since December 2, to hit 1.3229 during European afternoon trade, shedding 0.23%.
The pair was likely to find support at 1.3059, the low of December 2 and resistance at 1.3421, the high of December 6.
The proposal by U.S. President Barack Obama to extend tax cuts for two years could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Meanwhile, on Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the pound, with EUR/GBP shedding 0.49% to hit 0.8373.
Earlier Wednesday, official data showed that German industrial production rose significantly more-than-expected in October, led by demand for investor goods, such as machinery.
EUR/USD clawed up from 1.3179, the pair’s lowest since December 2, to hit 1.3229 during European afternoon trade, shedding 0.23%.
The pair was likely to find support at 1.3059, the low of December 2 and resistance at 1.3421, the high of December 6.
The proposal by U.S. President Barack Obama to extend tax cuts for two years could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Meanwhile, on Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the pound, with EUR/GBP shedding 0.49% to hit 0.8373.
Earlier Wednesday, official data showed that German industrial production rose significantly more-than-expected in October, led by demand for investor goods, such as machinery.