Forexpros – The euro trimmed gains against the U.S. dollar on Wednesday, pulling back from the daily high after high after Germany’s high court upheld the legality of Greece’s bailout but ruled that the country’s parliament must approve future euro zone rescue packages.
EUR/USD pulled away from 1.4150, the daily high, to hit 1.4057 during European early afternoon trade, still up 0.42% over the day.
The pair was likely to find support at 1.3971, Tuesday’s low and a seven-week low and resistance at 1.4172, Monday’s high.
Earlier in the day, Germany’s constitutional court said the government must seek the approval of parliament’s budget committee before granting future major aid deals and said that the ruling should not be misinterpreted as a “blank cheque” for future rescue packages.
The ruling may make it more difficult for the euro zone to respond quickly in delivering financial aid to indebted member states.
Elsewhere, the European Union Commission said that an international mission would return to Greece in mid-September to resume stalled talks on the country’s next tranche of financial aid.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP inching up 0.04% to hit 0.8783.
Also Wednesday, official data showed that German factory production rose significantly more-than-expected in July.
Germany’s federal statistical office said industrial production climbed by a seasonally adjusted 4.0% in July, blowing past expectations for a 0.5% gain.
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