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Forex - EUR/USD extends gains as Greek debt concerns simmer

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Forex Pros - The euro extended gains against the U.S. dollar on Tuesday, rising to a fresh daily high, while unresolved concerns over Greek sovereign debt continued to simmer.

EUR/USD hit 1.4123 during early U.S. trading hours, the daily high; the pair subsequently consolidated at 1.4117, gaining 0.49%.

The pair was likely to find short-term support at 1.3968, Monday's low and a 10-week low and resistance at 1.4345, Friday's high.

Earlier in the day, the leader of Greece's main opposition party, Antonis Samaras rejected the country's new austerity plan, saying the measures would deepen Greece's recession and do little to close the country's budget gap.

Meanwhile, rating agency Moody's said a Greek debt default would put Portugal and Ireland at risk of multi-notch credit downgrades.

On Monday, Greece's cabinet broadly approved EUR6 billion in new austerity measures, aimed at narrowing the budget deficit this year.

The euro was also fractionally higher against the pound, with EUR/GBP easing up 0.04% to hit 0.8717.

The single currency found support earlier after a report showed that German business confidence remained unexpectedly unchanged in May, as rising exports and increased company spending boosted economic growth.

The Ifo institute said its business climate index held at 114.2 from April. Economists forecast a decline to 113.7.

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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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