Forex Pros – The euro edged higher against the U.S. dollar on Wednesday but the single currency’s gains were capped amid lingering uncertainty over the euro zone debt crisis and the course of the global economy.
EUR/USD hit 1.4287 during European morning trade, the pair’s highest since May 13; the pair subsequently consolidated at 1.4255, gaining 0.13%.
The pair was likely to find support at 1.4198, Tuesday’s low and resistance at 1.4422, the high of May 11.
European Commissioner Olli Rehn said Tuesday Greece had promised there will be an announcement in the coming days of new efforts to tackle its economic crisis and added his voice to those willing to consider a Greek debt “re-profiling” or a voluntary extension of loan maturities.
Separately Tuesday, official data showed that U.S. housing starts and building permits fell in April, while factory output slumped, underlining the view that the Federal Reserve is likely to maintain its course of loose monetary policy for some time to come.
Earlier Wednesday, Germany paid less to borrow than a month ago at a sale of EUR 4.9 billion in five-year bonds, as concerns over Greece’s debt crisis boosted appetite for bonds from the euro zone’s most secure borrower.
The euro was also higher against the pound, with EUR/GBP rising 0.58% to hit 0.8810.
Later in the day, the Federal Reserve was to publish the minutes of its April policy meeting.
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