Forexpros – The euro was steady against the U.S. dollar on Tuesday, trading close to an 11-month low amid ongoing uncertainty over the debt crisis in the euro zone following talks by European Union finance ministers on Monday.
EUR/USD hit 1.3018 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3011, easing up 0.10%.
The pair was likely to find support at 1.2945, the low of December 14 and an 11-month low and resistance at 1.3042, Monday’s high.
EU finance ministers agreed to provide EUR150 billion in loans to the International Monetary Fund, but doubts remain over whether this will be enough to prevent the debt crisis escalating.
European Central Bank President Mario Draghi reiterated that the bank’s bond purchasing program was temporary and “not infinite” and said the euro zone economy was likely to enter a recession by early next year.
Earlier in the day, a report by Gfk showed that an index of Germany’s consumer climate was unchanged at 5.6 in December, confounding expectations for a decline to 5.5 as income and economic expectations both improved.
Meanwhile, the euro was lower against the pound, with EUR/GBP slipping 0.15% to hit 0.8373.
Later in the day, Spain was due to auction three- and six-month government bonds, while Germany was to release a closely watched report on business climate. The U.S. was to publish official data on building permits as well as a report on housing starts.
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