Shutterstock photo
Markets

Forex - EUR/USD edges higher but gains limited

Shutterstock photo

Shutterstock photo

Investing.com - The euro edged higher against the U.S. dollar on Tuesday, pulling away from four-month lows, but gains were limited by fears future euro zone bank rescues could impose a burden on depositors.

EUR/USD hit 1.2882 during late Asian trade, the session high; the pair subsequently consolidated at 1.2883, adding 0.24%.

The pair was likely to find support at 1.2737, the low of November 21 and resistance at 1.2978, the high of March 20.

The euro came under broad selling pressure on Monday, after the head of the Eurogroup, Jeroen Dijsselbloem, said said the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

Early Monday, euro zone finance ministers rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

The euro was steady against the pound with EUR/GBP inching up 0.03%, to hit 0.8470.

Later in the day, the U.S. was to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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.

Other Topics

ForEx