Forex Pros - The euro held gains against the U.S. dollar on
Tuesday, as investors awaited the outcome of a critical
parliamentary confidence vote for Greek Prime Minister George
EUR/USD hit 1.4388 during early U.S. trade, the pair's highest
since June 15; the pair subsequently consolidated at 1.4369,
The pair was likely to find support at 1.4126, last Friday's low
and resistance at 1.4496, the high of June 14.
Greece's prime minister needs the confidence vote to pass in order
for his government to secure support for new austerity measures and
qualify for a second tranche of emergency loans from the European
Union and International Monetary Fund, in order to avert a
sovereign debt default.
Earlier in the day, the euro slipped after the ZEW Centre for
Economic Research said its index of German economic sentiment fell
significantly more-than-expected in June, dropping for the fourth
The index fell to -9.0 in June from a reading of 3.1 in May.
Analysts had expected the index to decline to -3.0 in June.
Commenting on the report, ZEW President Wolfgang Franz said,
"Troubles in the euro zone as well as the feared economic downturn
in the U.S. seem to weigh heavily on the mind of the financial
The euro was also up against the pound, with EUR/GBP rising 0.39%
to hit 0.8862.
Also Tuesday, the U.S. National Association of Realtors said
existing home sales declined broadly in line with expectations in
May, down 3.8% to a seasonally adjusted annual rate of 4.81 million
Analysts had expected existing home sales to decline to 4.78
million last month, from a downwardly revised 5.0 million in April.