Forexpros – The euro declined against the U.S. dollar Thursday, despite European leaders stating they aim to approve a second bailout package for Greece by Monday.
EUR/USD bounced from 1.3086 to hit 1.3143 during mid U.S. trade giving back 0.13% on the session.
The pair was likely to find support at 1.3025, Wednesday’s low and technical resistance exists at 1.3232 last Friday’s and six week high.
The single currency found support after EU Economic and Monetary Affairs Commissioner Olli Rehn stated that Greek debt negotiations were at an advanced stage with a conclusion pending.
The deal is supposed to be approved at an extraordinary meeting of EU finance ministers on Monday.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
However, Eurogroup head, Jean Claude Juncker stated talks with private creditors on the Greek debt restructuring plan have proven to be “ultra difficult”.
In the U.S., data indicated that the number of filings for unemployment assistance last week dropped more than expected to 367,000 beating estimates for a decline of 373,000.
Economists believe jobless claims below 400,000 indicate an improving labor market. The number has remained below 400,000 in 12 of the last 14 weeks.
Earlier, Spain auctioned EUR4.5billion of medium term debt at lower yields than previously, while France sold EUR8 billion of debt to solid investor interest and lower yields.
The euro eased higher against the pound, with EUR GBP climbing 0.07% to 0.8318.
Euro zone producer price inflation fell 0.2% in December after climbing 0.2% the previous month.
Year over yeah, PPI climbed at 4.3% in December, meeting expectations, after advancing 5.4% in November.
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