EUR/USD Extends Gains On Greek Hopes |
– The euro extended gains against the U.S. dollar on Monday, after successful German and Italian bond auctions while sentiment remained supported by the vote of a new austerity plan by Greek lawmakers.
EUR/USD hit 1.3284 during European late morning trade, the daily high; the pair subsequently consolidated at 1.3256, climbing 0.44%.
The pair was likely to find support at 1.3154, the low of February 10 and resistance at 1.3381, the high of December 12.
Germany sold EUR3 billion of six-month bills at an average yield of 0.0761% earlier. At a previous auction of this type, investors had paid Germany to hold its debt with the yield coming in at -0.012%.
Meanwhile, Italy sold EUR8.5 billion of one-year bills at yields of 2.23%, down from 2.735% at a similar auction last month, plus another EUR3.5 billion of 127-day bills at just 1.5%, down from 1.64%.
Investor confidence strengthened earlier after Greece’s parliament approved on Sunday a set of austerity measures, including cuts in private-sector wages, 15,000 public-sector job cuts and EUR3 billion in government-spending cuts this year alone.
However, Greece must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new EUR130 billion bailout.
Elsewhere, the euro was higher against the pound with EUR/GBP adding 0.11%, to hit 0.8385.
Earlier Monday, Germany Finance Minister Wolfgang Schaeuble said in an interview with a German newspaper that Greek promises on austerity measures are no longer good enough because so many vows have been broken.
