Forex Pros – The euro pared losses against the U.S. dollar on Wednesday, after Finland’s parliament approved Portugal’s bailout package, but the single currency remained under pressure amid ongoing concerns over Greece’s sovereign debt.
EUR/USD eased off 1.4012, the daily low, to hit 1.4063 during European early afternoon trade, still down 0.25% on the day.
The pair was likely to find support at 1.3868, the low of March 17 and resistance at 1.4144, Mondays high.
Earlier in the day, Finland’s parliament approved Portugal’s EUR 78 billion bailout package from the European Union and International Monetary Fund. Finland’s parliament, unlike others in the euro zone, has the right to vote on EU requests for bailout funds.
But the euro remained under broad selling pressure amid speculation that Greece may call a snap election after the government failed to reach consensus with the opposition on new austerity measures on Tuesday.
Some EU officials have supported a so-called “reprofiling” of Greece’s debt, whereby its payback period could be lengthened and interest costs may be reduced.
The euro was also lower against the pound, with EUR/GBP shedding 0.56% to hit 0.8664.
Also Wednesday, data showed that Germany’s consumer climate declined more-than-expected this month as the euro zone’s sovereign debt crisis and higher energy costs weighed on sentiment.
ForexPros.com
