Investing.com - The euro trimmed losses against the U.S. dollar on Tuesday, pulling away from the session low but sentiment remained weak amid ongoing uncertainty over whether a second Greek bailout would be enough to avert a default in the long run.
EUR/USD pulled back from 1.3187 the session low to hit 1.3238 during U.S. morning trade, down just 0.02% on the day.
The pair was likely to find support at 1.3114, last Friday’s low and resistance at 1.3293, the session high.
The single currency hit a session high against the greenback earlier after euro zone finance ministers agreed the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of more than 53%, which is expected to cut Greece's debt by EUR107 billion.
But the initial optimism which greeted the announcement of the deal faded amid concerns over Greece’s ability to implement the terms of the package and the country’s deteriorating economic situation.
Meanwhile, the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said in its latest report on Greece's debt sustainability that "additional debt relief" will be required in the future.
Elsewhere, Spain saw short-term borrowing costs fall to the lowest level in two-years following an auction of government debt that met with solid investor demand.
The euro was higher against the pound and steady against the yen, with EUR/GBP adding 0.37% to hit 0.8384 and EUR/JPY inching up 0.03% to hit 105.47.
Also Tuesday, Germany’s Finance Minister Wolfgang Schaeuble said that the IMF could contribute as much as EUR23 billion to the Greek rescue package, but added that a final decision would be taken at a meeting next week.
EUR/USD pulled back from 1.3187 the session low to hit 1.3238 during U.S. morning trade, down just 0.02% on the day.
The pair was likely to find support at 1.3114, last Friday’s low and resistance at 1.3293, the session high.
The single currency hit a session high against the greenback earlier after euro zone finance ministers agreed the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of more than 53%, which is expected to cut Greece's debt by EUR107 billion.
But the initial optimism which greeted the announcement of the deal faded amid concerns over Greece’s ability to implement the terms of the package and the country’s deteriorating economic situation.
Meanwhile, the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said in its latest report on Greece's debt sustainability that "additional debt relief" will be required in the future.
Elsewhere, Spain saw short-term borrowing costs fall to the lowest level in two-years following an auction of government debt that met with solid investor demand.
The euro was higher against the pound and steady against the yen, with EUR/GBP adding 0.37% to hit 0.8384 and EUR/JPY inching up 0.03% to hit 105.47.
Also Tuesday, Germany’s Finance Minister Wolfgang Schaeuble said that the IMF could contribute as much as EUR23 billion to the Greek rescue package, but added that a final decision would be taken at a meeting next week.