Forexpros – The euro pared gains against the U.S. dollar on Wednesday, pulling away from a session high as markets were jittery ahead of the deadline for Greece’s private creditors to sign off on a debt swap deal on Thursday.
EUR/USD pulled back from 1.3164, the daily high, to hit 1.3128 during European afternoon trade, still up 0.12%.
The pair was likely to find support at 1.3065, the low of February 3 and resistance at 1.3225, Tuesday’s high.
Investors remained cautious ahead of the March 8 deadline for the Greece’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
A participation rate of more than 75% of creditors is required for Greece to secure a EUR130 billion bailout in order to avoid a default when a bond repayment due on March 20.
Sentiment on the euro also came under pressure after official data showed that German factory orders tumbled by a seasonally adjusted 2.7% in January, confounding expectations for a 0.6% increase, as orders for capital goods and consumer goods weakened.
Meanwhile, the outlook for global growth remained downbeat after official data showed that Australia’s economy expanded less than expected in the fourth quarter.
The single currency was steady against the pound with EUR/GBP inching 0.06% higher, to hit 0.8348.
Later in the day, the U.S. was to publish a report on ADP non-farm payrolls, followed by revised data on non-farm productivity and labor costs, as well as a report on crude oil stockpiles.
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