Investing.com – The euro moved higher against the U.S. dollar on Wednesday, pulling back from Tuesday’s three-week trough but the single currency’s gains looked set to be capped amid concerns over a planned referendum by Greece.
EUR/USD hit 1.3756 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3742, gaining 0.29%.
The pair looked likely to find support at 1.3607, Tuesday’s low and a three-week low and resistance at 1.3870, Tuesday’s high.
The euro fell against all of its major counterparts on Tuesday, after Greek Prime Minister George Papandreou announced a surprise referendum on the country’s bailout program.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country towards the brink of default and increasing the risk of contagion in global financial markets.
The announcement saw the yield on 10-year Italian government bonds soar to a euro-lifetime high, despite the European Central Bank's support for the Italian bond market.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.09% to hit 0.8598.
Later Wednesday, the U.S. was to release private sector data on non-farm payrolls. Meanwhile, the Federal Reserve was to hold its policy-setting meeting; Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference.
EUR/USD hit 1.3756 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3742, gaining 0.29%.
The pair looked likely to find support at 1.3607, Tuesday’s low and a three-week low and resistance at 1.3870, Tuesday’s high.
The euro fell against all of its major counterparts on Tuesday, after Greek Prime Minister George Papandreou announced a surprise referendum on the country’s bailout program.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country towards the brink of default and increasing the risk of contagion in global financial markets.
The announcement saw the yield on 10-year Italian government bonds soar to a euro-lifetime high, despite the European Central Bank's support for the Italian bond market.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.09% to hit 0.8598.
Later Wednesday, the U.S. was to release private sector data on non-farm payrolls. Meanwhile, the Federal Reserve was to hold its policy-setting meeting; Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference.