Forex - EUR/USD extends gains after German debt auction
Investing.com
Published Jan 23, 2012 06:51AM ET
EUR/USD hit 1.3014 during European late morning trade, the pair’s highest since January 4; the pair subsequently consolidated at 1.3005, gaining 0.58%.
The pair was likely to find support at 1.2838, last Thursday’s low and short-term resistance at 1.3072, the high of January 4.
Germany auctioned EUR2.54 billion of 12-month Treasury bills at an auction which met with strong investor demand at very low yields.
Meanwhile, European Union finance ministers were to meet later to discuss the terms of a proposed debt restructuring package for Greece, as well as the terms of a fiscal compact that was agreed upon in December.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avoid a default when an EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
The euro was also higher against the pound, with EUR/GBP advancing 0.59% to hit 0.8350.
Also Monday, the Bank of Spain said the country’s economy will fall back into recession this year with a contraction of 1.5%, but added that it expects the economy to make a modest rebound in 2013 with gross domestic product growth of 0.2%.
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Written By: Investing.com
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