Forex Pros – The euro was trading close to a six-week low against the U.S. dollar on Monday, ahead of the resumption of talks by European Union finance ministers to discuss further financial assistance to Greece and Portugal.
EUR/USD hit 1.4048 during European early afternoon trade, the pair’s lowest since March 28; the pair subsequently consolidated at 1.4114, dipping 0.03%.
The pair was likely to find support at 1.3868, the low of March 17 and resistance at 1.4276, last Thursday’s high.
EU finance ministers were to meet later in the day to discuss further support for Greece which is struggling to meet the terms of a EUR110 billion EU/ International Monetary Fund bailout last year.
Also on the agenda was the approval of EUR78 billion in aid for Portugal but the situation was complicated by the weekend arrest of the head of the IMF Dominique Strauss-Kahn on sexual assault charges.
Analysts were concerned about the impact of Mr. Strauss-Kahn’s absence from the meeting.
Meanwhile, the euro edged higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8722.
Also Monday, the U.S. was to publish official data on manufacturing activity in New York state, while Federal Reserve Chairman Ben Bernanke was to speak.
ForexPros.com
