Investing.com - The euro maintained yesterday's gains against the U.S. dollar on Tuesday as investors optimistically await the outcome of a meeting between Angela Merkel and International Monetary Fund President, Christine Legarde regarding Greece's bailout.
EUR/USD hit a low of 1.2743 during U.S. trade. The pair is off a high of 1.2818 and is currently trading at 1.2771 up 0.05%.
The pair was likely to find support at 1.2665 and technical resistance exists at 1.2891.
The single currency was buoyed after rating agency Fitch stated that France would not be downgraded in 2012.
However, Fitch warned that Italy still remains at substantial risk for a rating downgrade.
Earlier, Italy's largest bank, UniCredit share rights dropped 57% from last week signaling greater fiscal trouble from the euro zone nation.
Meanwhile, Merkel sternly warned Greece that it is impossible to bail the nation out unless swift progress is made on its second rescue package including a write down of debt held by private creditors.
On Monday, Futures traders increased their bets to a record number that the euro will decline against the dollar. The Commodity Futures Trading Commission reported that the difference between long and short positions soared to 138,909 in the week ending January 3rd.
The Euro eased lower against the pound with EUR/GBP dipping 0.05% to 0.8254.
Investors are awaiting UK trade balance and euro zone GDP on Wednesday.
EUR/USD hit a low of 1.2743 during U.S. trade. The pair is off a high of 1.2818 and is currently trading at 1.2771 up 0.05%.
The pair was likely to find support at 1.2665 and technical resistance exists at 1.2891.
The single currency was buoyed after rating agency Fitch stated that France would not be downgraded in 2012.
However, Fitch warned that Italy still remains at substantial risk for a rating downgrade.
Earlier, Italy's largest bank, UniCredit share rights dropped 57% from last week signaling greater fiscal trouble from the euro zone nation.
Meanwhile, Merkel sternly warned Greece that it is impossible to bail the nation out unless swift progress is made on its second rescue package including a write down of debt held by private creditors.
On Monday, Futures traders increased their bets to a record number that the euro will decline against the dollar. The Commodity Futures Trading Commission reported that the difference between long and short positions soared to 138,909 in the week ending January 3rd.
The Euro eased lower against the pound with EUR/GBP dipping 0.05% to 0.8254.
Investors are awaiting UK trade balance and euro zone GDP on Wednesday.