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Forex - EUR/USD up but off 4-week high after Greece downgrade

Published 06/02/2011, 02:17 AM
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Investing.com – The euro was up against the U.S. dollar on Thursday, but remained below a recent four-week high after Moody's Investors Service slashed Greece's credit rating by three notches.

EUR/USD hit 1.4377 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4372, gaining 0.32%.

The pair was likely to find support at 1.4256, the low of May 30 and short-term resistance at 1.4458, Wednesday’s high and a four-week high.

On Wednesday, Moody's cut Greece's sovereign rating from B1 to Caa1, only four notches above the default level. The outlook on the new rating is negative, in a sign that another downgrade is likely in the short-to-medium term.

The dollar remained broadly weaker after data on Wednesday showed that U.S. private-sector employment growth slowed sharply in May.

Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, far below expectations for an increase of 178K.

The euro was also higher against the pound, with EUR/GBP climbing 0.29% to hit 0.8798.

Later in the day, European Central Bank President Jean-Claude Trichet was to speak. Meanwhile, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on non-farm productivity and labor costs. The country was also to publish official data on factory orders.

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