EUR/USD Edges Up To 2-day High |
– The euro edged higher against the U.S. dollar on Thursday, despite the previous day’s disappointing euro zone economic data and ongoing doubts over the sustainability of Greece’s second bailout deal.
EUR/USD hit 1.3288 during late Asian trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.3283, rising 0.26%.
The pair was likely to find support at 1.3171, Monday’s low and resistance at 1.3320, the high of February 9 and a two-month high.
Concerns over the impact of Europe’s debt crisis on the region’s economy returned to the fore on Wednesday, after preliminary data showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Meanwhile, concerns over whether a second EUR130 billion bailout for Greece will be enough to resolve the country’s fiscal woes continued after ratings agency Fitch cut Greece’s credit rating to C from CCC and reiterated that a bond-swap agreement with private creditors would be a restricted default.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.09% to hit 0.8463.
Later in the day, the Ifo Institute was to publish a report on German business climate, while the U.S. was to produce government data on initial jobless claims.
