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Forex – EUR/USD hits 3-week high on Greece debt hopes

Published 06/01/2011, 02:27 AM
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EUR/GBP
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Investing.com – The euro was up against the U.S. dollar on Wednesday, trading at a three-week high boosted by hopes for an agreement on Greek austerity steps while a string of weak data weighed on the greenback.

EUR/USD hit 1.4444 during late Asian trade, the pair’s highest since May 6; the pair subsequently consolidated at 1.4434, gaining 0.27%.

The pair was likely to find support at 1.4276, Tuesday’s low and resistance at 1.4587, the high of May 6.

The single currency was boosted after Greek media outlets reported that the Greek government's mid-term fiscal plans were expected to be finalized by Wednesday night or Thursday morning.

Meanwhile, on Tuesday private sector data showed that U.S. house prices fell more-than-expected in March, declining for the ninth consecutive month. Separate reports showed that manufacturing activity in the Midwest area fell significantly more-than-expected last month, while U.S. consumer confidence fell steeply in May.

The euro was also higher against the pound, with EUR/GBP rising 0.25% to hit 0.8773.

Later Wednesday, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls. Elsewhere, the Institute of Supply Management was to publish data on manufacturing activity.


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