Forex Pros — The euro pared gains against the U.S. dollar on Tuesday, easing off a four-day high after a weaker-than expected reading of German economic sentiment but remained supported ahead of a key confidence vote in the Greek parliament.
EUR/USD pulled back from 1.4384, the pair’s highest since June 15, to hit 1.4347 during European late morning trade, still up 0.30% on the day.
The pair was likely to find support at 1.4126, last Friday’s low and resistance at 1.4496, the high of June 14.
The euro slipped after the ZEW Centre for Economic Research said its index of German economic sentiment fell significantly more-than-expected in June, dropping for the fourth consecutive month.
The index fell to -9.0 in June from a reading of 3.1 in May. Analysts had expected the index to decline to -3.0 in June.
Commenting on the report, ZEW President Wolfgang Franz said, “Troubles in the euro zone as well as the feared economic downturn in the U.S. seem to weigh heavily on the mind of the financial market experts”.
In Greece, the confidence vote needed to pass in order for Prime Minister George Papandreou to secure support for a fresh round of austerity measures, in order to qualify for a second tranche of emergency loans from the European Union and International Monetary Fund and avert a sovereign debt default.
The euro was also up against the pound, with EUR/GBP rising 0.29% to hit 0.8853.
Also Tuesday, the U.S. was to publish industry data on existing home sales.
ForexPros.com
