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Forex - Euro trims losses against dollar but remains under pressure

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Forex Pros - The euro trimmed losses against the U.S. dollar on Monday, but remained under broad selling pressure after euro zone finance ministers delayed a final decision on emergency loans for Greece.

EUR/USD pulled away from 1.4192, the daily low, to hit 1.4240 during European late morning trade, still down 0.49% on the day.

The pair was likely to find support at 1.4072, last Thursday's low and a three-week low and resistance at 1.4450, the high of June 15.

The euro fell broadly after European finance ministers said Sunday that a new financing strategy for Greece will only be decided by early July and would be dependent on the Greek parliament passing unpopular new economic reforms and austerity measures.

Earlier Monday, the cost of insuring Greek sovereign debt against default surged to almost touch the euro-lifetime high hit on Friday.

The cost of insuring Italian government debt also rose, after ratings agency Moody's placed Italy's sovereign debt rating under review late Friday, adding to contagion fears in the single currency bloc.

The euro was also lower against the pound, with EUR/GBP shedding 0.35% to hit 0.8806.

Also Monday, official data showed that Germany's producer price index was unexpectedly flat in May, after rising 1.0% in April. Analysts had expected the index to rise by 0.2% in May.

A separate report showed that the euro zone current account deficit widened more-than-expected in April.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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