Investing.com – The euro trimmed losses against the U.S. dollar on Tuesday, easing off the daily low after German Chancellor Angela Merkel said the top priority for policymakers was to avoid an "uncontrolled insolvency" for Greece.
EUR/USD pulled away from 1.3559, the daily low, to hit 1.3667 during European early afternoon trade, down just 0.08% on the day.
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.
In a radio interview earlier, Merkel said Europe was doing everything in its power to prevent a default by Greece saying, "We are using all the tools we have to prevent this. We need to avoid all disorderly processes with regards to the euro."
Merkel’s comments came after her vice chancellor said Monday that Europe should not rule out an "orderly default" for Greece.
Elsewhere, the Italian Treasury sold a total of EUR6.48 billion worth of fixed rate bonds earlier, just under its maximum target of EUR7 billion.
The Treasury offered up to EUR4 billion in a new five-year bond, maturing in 2016 and sold EUR3.86 billion at a yield of 5.60%, the highest level since the inception of the single currency.
The Treasury also sold EUR2.62 billion of bonds maturing in 2018.
The auction came after earlier reports that Italy's Finance Ministry had held talks with Chinese officials about “significant” purchases of Italian bonds.
Meanwhile, the euro edged higher against the pound, with EUR/GBP rising 0.20% to hit 0.8642.
On Monday, Italian Prime Minister Silvio Berlusconi pledged that an unpopular austerity bill would be approved this week, in a move designed to reassure markets about Italy’s finances amid the euro zone debt crisis.
EUR/USD pulled away from 1.3559, the daily low, to hit 1.3667 during European early afternoon trade, down just 0.08% on the day.
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.
In a radio interview earlier, Merkel said Europe was doing everything in its power to prevent a default by Greece saying, "We are using all the tools we have to prevent this. We need to avoid all disorderly processes with regards to the euro."
Merkel’s comments came after her vice chancellor said Monday that Europe should not rule out an "orderly default" for Greece.
Elsewhere, the Italian Treasury sold a total of EUR6.48 billion worth of fixed rate bonds earlier, just under its maximum target of EUR7 billion.
The Treasury offered up to EUR4 billion in a new five-year bond, maturing in 2016 and sold EUR3.86 billion at a yield of 5.60%, the highest level since the inception of the single currency.
The Treasury also sold EUR2.62 billion of bonds maturing in 2018.
The auction came after earlier reports that Italy's Finance Ministry had held talks with Chinese officials about “significant” purchases of Italian bonds.
Meanwhile, the euro edged higher against the pound, with EUR/GBP rising 0.20% to hit 0.8642.
On Monday, Italian Prime Minister Silvio Berlusconi pledged that an unpopular austerity bill would be approved this week, in a move designed to reassure markets about Italy’s finances amid the euro zone debt crisis.