Investing.com – The euro remained higher against the U.S. dollar on Wednesday, after Germany’s high court upheld the legality of Greece’s bailout but the single currency remained under pressure ahead of the European Central Bank’s policy meeting on Thursday.
EUR/USD pulled away from 1.4150, the daily high, to hit 1.4049 during U.S. morning trade, still up 0.36% over the day.
The pair was likely to find support at 1.3971, Tuesday’s low and a seven-week low and resistance at 1.4172, Monday’s high.
Earlier in the day, Germany’s constitutional court said the government must seek the approval of parliament's budget committee before granting future major aid deals, adding that the ruling should not be misinterpreted as a "blank cheque" for future rescue packages.
The ruling may make it more difficult for the euro zone to respond quickly in delivering financial aid to indebted member states.
Elsewhere, the European Union Commission said that an international mission would return to Greece in mid-September to resume stalled talks on the country’s next tranche of financial aid.
But the shared currency remained vulnerable ahead of the ECB’s policy meeting, as concerns over the outlook for global growth and fears over the region’s sovereign debt issues could see the central bank signal a pause in monetary tightening.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.10% to hit 0.8788.
Also Wednesday, official data showed that German factory production rose significantly more-than-expected in July.
Germany’s federal statistical office said industrial production climbed by a seasonally adjusted 4.0% in July, blowing past expectations for a 0.5% gain.
EUR/USD pulled away from 1.4150, the daily high, to hit 1.4049 during U.S. morning trade, still up 0.36% over the day.
The pair was likely to find support at 1.3971, Tuesday’s low and a seven-week low and resistance at 1.4172, Monday’s high.
Earlier in the day, Germany’s constitutional court said the government must seek the approval of parliament's budget committee before granting future major aid deals, adding that the ruling should not be misinterpreted as a "blank cheque" for future rescue packages.
The ruling may make it more difficult for the euro zone to respond quickly in delivering financial aid to indebted member states.
Elsewhere, the European Union Commission said that an international mission would return to Greece in mid-September to resume stalled talks on the country’s next tranche of financial aid.
But the shared currency remained vulnerable ahead of the ECB’s policy meeting, as concerns over the outlook for global growth and fears over the region’s sovereign debt issues could see the central bank signal a pause in monetary tightening.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.10% to hit 0.8788.
Also Wednesday, official data showed that German factory production rose significantly more-than-expected in July.
Germany’s federal statistical office said industrial production climbed by a seasonally adjusted 4.0% in July, blowing past expectations for a 0.5% gain.