Investing.com – The euro erased losses against the U.S. dollar in choppy trade on Tuesday, as the single currency found support amid signs of progress on resolving the sovereign debt crisis in the single currency bloc.
EUR/USD clawed back up from 1.3559, the daily low to hit 1.3690 during U.S. morning trade, easing up 0.09%.
The pair was likely to find support at 1.3493, Monday’s low and a seven-month low and resistance at 1.3860, the high of February 2.
The euro was boosted after German Chancellor Angela Merkel said she was “very optimistic” that Finland’s demands for special collateral as part of the Greek bailout package will be met.
Meanwhile, Greek Prime Minister George Papandreou was to hold a conference call with Merkel and French President Nicolas Sarkozy on Thursday to discuss developments in Greece.
The single currency remained under pressure amid expectations that ratings agency Moody's would cut the ratings of France’s three largest banks later this week, due to their exposure to Greek holdings.
The euro was also higher against the pound, with EUR/GBP adding 0.44% to hit 0.8660.
Earlier Tuesday, the euro fell to a session low as Italian borrowing costs surged to their highest level since the introduction of the single currency, following a disappointing auction of Italian government debt.
EUR/USD clawed back up from 1.3559, the daily low to hit 1.3690 during U.S. morning trade, easing up 0.09%.
The pair was likely to find support at 1.3493, Monday’s low and a seven-month low and resistance at 1.3860, the high of February 2.
The euro was boosted after German Chancellor Angela Merkel said she was “very optimistic” that Finland’s demands for special collateral as part of the Greek bailout package will be met.
Meanwhile, Greek Prime Minister George Papandreou was to hold a conference call with Merkel and French President Nicolas Sarkozy on Thursday to discuss developments in Greece.
The single currency remained under pressure amid expectations that ratings agency Moody's would cut the ratings of France’s three largest banks later this week, due to their exposure to Greek holdings.
The euro was also higher against the pound, with EUR/GBP adding 0.44% to hit 0.8660.
Earlier Tuesday, the euro fell to a session low as Italian borrowing costs surged to their highest level since the introduction of the single currency, following a disappointing auction of Italian government debt.