Forex - EUR/USD rebounds from 7-day low as risk aversion wanes
Investing.com
Published Jun 27, 2011 06:49AM ET
EUR/USD clawed back up from 1.4103, the pair’s lowest since June 16 to hit 1.4222 during European late morning trade, rising 0.24%.
The pair was likely to find support at 1.4067, the low of May 5 and resistance at 1.4305, Friday’s high.
Greek Prime Minister George Papandreou needs to secure parliamentary approval for a EUR28.4 billion, five-year austerity package on Wednesday, in order to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
On Sunday, Greece's deputy Prime Minister Theodoros Pangalos warned that the Greek parliament may block some of the economic reforms, but added that lawmakers will probably approve an overall austerity package to stave off a default.
The euro also inched higher against the pound, with EUR/GBP easing up 0.03% to hit 0.8894.
Later Monday, the U.S. was to publish official data on personal earnings and expenditure as well as data on the consumer price index.
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Written By: Investing.com
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