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Forex - EUR/USD trims losses, remains under pressure

Published 03/12/2012, 03:35 AM
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Investing.com - The euro trimmed losses against the U.S. dollar on Monday, pulling back from an almost one-month low, but the single currency remained under pressure after Friday’s robust U.S. jobs data and amid ongoing concerns over Greece.

EUR/USD pulled away from 1.3079, the pair’s lowest since February 16, to hit 1.3104 during late Asian trade, still down 0.14% on the day.

The pair was likely to find support at 1.3043, the low of February 15 and resistance at 1.3240, the high of March 5.

The euro dropped more than 1% against the dollar on Friday after the Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.

The strong data boosted the dollar as it diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.

But the shared currency remained under pressure after Friday’s ruling by the International Swaps and Derivatives Association, which said that Greece’s debt swap with private creditors constituted a “credit event” that would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.

The euro was lower against the pound and the yen, with EUR/GBP sliding 0.20% to hit 0.8354 and EUR/JPY shedding 0.41% to hit 107.78.

Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.

Ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its public deficit to 5.8% of annual output, instead of the planned 4.4% this year.


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