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Forexpros – The euro traded higher against the U.S. dollar Friday in anticipation that European finance ministers will agree to bolster rescue funds at a two day meeting beginning today.
EUR/USD hit 1.3340 during U.S. morning trade after coming off a high of 1.3375 and a low of 1.3294 during the session.
The pair was likely to find support at 1.3192, Monday’s low and technical resistance exists at 1.3386, Tuesday’s high.
Euro zone leaders are forecast to agree on a rescue fund of about EUR800 billion at the two day Copenhagen meeting starting Friday.
The number includes the EUR500 billion permanent rescue fund plus the existing bailouts for Ireland, Portugal, as well as Greece’s second bailout package.
European policy makers are working toward a balance between meeting international demands for increased rescue funds and opposition in donor countries, such as Germany, to providing additional aid for the regions struggling economies.
Meanwhile in Spain, Prime Minister Mariano Rajoy will announce the most austere budget since the nations return to democracy in 1978.
Spain risks a deeper recession in an attempt to avoid falling victim to the euro zone’s debt crisis.
Investors are anticipation a U.S. report to indicate increased consumer spending thereby lifting demand for riskier assets.
U.S. consumer purchases climbed 0.6% in February, after a 0.2% gain the previous month, adding to the risk on sentiment.
The euro was slightly lower against the pound, with EUR/GBP falling 0.07% to hit 0.8330 and was down against the yen, with EUR/JPY giving back 0.25% to hit 109.41.
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