Forexpros – The euro rose against the dollar on Wednesday, halting an earlier slide when reports emerged that despite financial institutions claiming they were on board to accept Greek restructuring terms, the overall number of private creditors needed to go forward on the deal were still lacking.
In Asian trading on Wednesday, EUR/USD hit 1.3134, up 0.15%, gaining from a session low of 1.3112 and off from a high of 1.3134.
The pair was likely to test technical support at 1.3104 and resistance at 1.3143.
Greece needs 75% of its private creditors to formally accept terms of a restructuring by March 8.
Private investors are set to forgive Greece 53.5% of their principal and swap their remaining holdings for new Greek bonds and notes from the European Financial Stability Facility.
However, despite calls from banks and other financial institutions saying they were on board, in reality, only about 20% of private creditors themselves appeared ready, according to various wire reports, which spooked markets worldwide.
Blessings from private creditors is a requirement for Greece to tap a EUR130 billion bailout fund and avoid a messy default, which would send shockwaves through financial systems worldwide.
Meanwhile, the eurozone’s revised fourth-quarter gross domestic product figures came in at -0.3%, in line with expectations.
China’s decision to set a 7.5% gross domestic product growth target for 2012, lower than what Beijing normally announces, also kept the euro weak and markets sagging in general.
Bargain hunters brought the currency back into positive territory in early Asian trading, even if for a little while.
The euro was up against the pound and down against the yen, with EUR/GBP trading up 0.07% at 0.8350 and EUR/JPY down 0.05% at 106.02.
Later Wednesday in Europe, the Swiss National Bank is to publish data on foreign currency reserves, which provides investors with insights into the bank’s currency market operations.
Germany is to release official data on factory orders, a leading indicator of production.
The U.S. is to publish a report on ADP non-farm payrolls, which serves as a precursor to official government jobs data due out in two days.
The country is also to release revised data on non-farm productivity and labor costs, which are important inflationary indicators, as well as a report on crude oil stockpiles.
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