Forex - EUR/USD extends gains but remains vulnerable
Investing.com
Published Jul 19, 2011 07:09AM ET
EUR/USD hit 1.4217 during European early afternoon trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.4182, gaining 0.50%.
The pair was likely to find support at 1.4013, Monday’s low and resistance at 1.4281, the high of July 14.
The single currency found support as market sentiment was boosted by a rebound in equities, following sharp falls on Monday and as yields on Italian and Spanish government bonds retreated slightly after rising sharply in the previous session amid fears over sovereign debt contagion.
On Thursday, euro zone leaders were to meet in Brussels attempt to finalize a second EUR110 billion bailout for Greece and discuss the overall financial stability of the single currency bloc.
Meanwhile, a report by the ZEW Centre for Economic Research said earlier that its index of German economic sentiment fell more-than-expected in July, dropping for the fifth consecutive month, as concerns over sovereign debt in the euro zone and the U.S. weighed.
The euro was also higher against the Swiss franc, with EUR/CHF climbing 0.65% to hit 1.1613.
Later Tuesday, the U.S. was to publish government data on building permits and housing starts.
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Written By: Investing.com
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