Forex Pros – The euro was lower against the U.S. dollar on Wednesday, as a mounting sense of uncertainty over whether Greece will need supplementary financial aid weighed on the currency.
EUR/USD hit 1.4368 during European late morning trade, the daily low; the pair subsequently consolidated at 1.4387, sliding 0.14%.
The pair was likely to find support at 1.4269, Tuesday’s low and resistance at 1.4587, last Friday’s high.
Earlier in the day, Germany’s deputy finance minister said that euro zone officials will debate Greece’s debt crisis next week but no decision will be taken. He added the sovereign debt crisis in some European countries was not a crisis of the euro.
Meanwhile, French Finance Minister Christine Lagarde said that it was hard to see Greece returning to debt markets in 2012, adding that Europe would have to keep financing countries in difficulty to avoid a costly restructuring.
The euro was also lower against the pound, with EUR/GBP tumbling 0.90% to hit 0.8724.
Earlier Wednesday, the Bank of England raised its medium-term forecast for inflation to just under 2% and said it could soon hit 5% before falling back, rekindling expectations for an interest rate increase this year.