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Forex - EUR/USD edges higher, Greece uncertainty weighs

Published 02/22/2012, 02:18 AM
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Investing.com - The euro edged higher against the U.S. dollar on Wednesday, but gains were limited as uncertainty remained over Greece’s ability to implement strict austerity measures in compliance with its new bailout deal.

EUR/USD hit 1.3250 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3245, inching up 0.09%.

The pair was likely to find support at 1.3171, the low of February 20 and resistance at 1.3320, the high of February 9.

Sentiment strengthened after euro zone finance ministers agreed to a EUR130 billion bailout package for Greece, early Tuesday morning.

However, investors remained cautious amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.

In addition, parliaments in three countries that have been most critical of bailouts, Germany, the Netherlands and Finland, must now approve the package.

The single currency was steady against the pound with EUR/GBP adding 0.01%, to hit 0.8388.

Later in the day, the euro zone was to release preliminary data on manufacturing and service sector activity, followed by official data on industrial new orders.

In the U.S., industry data was to be released on existing home sales as well as official data on crude oil stockpiles.


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