Forexpros – The euro erased gains against the U.S. dollar on Thursday, pulling away from a two-week high in volatile trade ahead of a critical euro zone summit meeting to discuss a solution to Greece’s debt problem later in the day.
EUR/USD retreated from 1.4294, the pair’s highest since July 8 to hit 1.4170 during European early afternoon trade, shedding 0.30%.
The pair was likely to find support at 1.4067, Tuesday’s low and resistance at 1.4374, the high of July 7.
The euro’s losses came after media outlets reported that Eurogroup President Jean-Claude Juncker said a selective default for Greece was possible, before trimming losses as the comments appeared to have been taken out of context.
The single currency strengthened against the greenback earlier after France and Germany announced that they had reached a joint agreement on how to deal with the Greek debt problem. Details of the deal were to be outlined at the summit of all 17 euro zone leaders later Thursday.
But the shared currency remained under pressure after preliminary data showed earlier that German manufacturing output fell to a 21-month low in July, while manufacturing activity in the euro zone slumped to the lowest since August 2009.
The euro was also lower against the pound, with EUR/GBP shedding 0.40% to hit 0.8765.
Also Thursday, the U.S. was to release a weekly government report on initial jobless claims, as well as a report on manufacturing activity.
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