Forexpros – The euro edged higher against the U.S. dollar on Wednesday, while risk appetite remained fragile after Slovakia’s parliament rejected a plan to expand the scope of the euro zone’s bailout fund.
EUR/USD hit 1.3664 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3666, rising 0.13%.
The pair was likely to find support at 1.3377, Monday’s low and short-term resistance at 1.3697, Monday’s high.
Slovakia is the only euro zone member that has yet to approve a plan to enlarge the lending capacity of the European Financial Stability Facility and a re-vote was expected to be held later in the week.
Risk sentiment was also hit after the U.S. Senate rejected President Barack Obama’s plan to jump-start U.S. job creation, adding to concerns over the rate of growth in the world’s largest economy.
But the euro remained supported after officials from the European Union, International Monetary Fund and European Central Bank said Greece was likely to receive its next tranche of financial aid next month and said Athens has made “important progress” in fiscal consolidation.
The euro also edged higher against the pound, with EUR/GBP easing up 0.06% to hit 0.8761.
Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. The U.S. was to publish the minutes of the Federal Reserve’s most recent policy-setting meeting.
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