Investing.com - The euro erased gains against the U.S. dollar on Wednesday, after strong U.S. home sales data and as concerns over Greece's debt woes continued to dampen demand for the single currency.
EUR/USD pulled away from 1.0799, the pair's highest since April 20, to hit 1.0723 during U.S. morning trade, easing 0.13%.
The pair was likely to find support at 1.0622, the low of April 16 and resistance at 1.0850, the high of April 17.
The U.S. National Association of Realtors said that existing home sales rose 6.1% last month to 5.19 million units from a revised total units of 4.89 million. Analysts had expected existing home sales to rise 3.0% in March.
The dollar's gains were capped however, as investors pushed back expectations for higher U.S. interest rates after a recent streak of soft economic data dampened optimism on the country's recovery.
Meanwhile, the euro remained under pressure as the Greek government was no closer to reaching an agreement with its euro zone partners and the International Monetary Fund over economic reforms required to access remaining bailout funds, fuelling fears that the country could be forced out of the euro zone.
On Tuesday Bloomberg reported that the European Central Bank is considering tighter rules on Greek banks in return for emergency liquidity, adding to pressure on Athens.
The euro was also lower against the pound, with EUR/GBP declining 0.72% to 0.7140.
In the U.K., the minutes of the Bank of England's latest monetary policy meeting showed that policymakers voted nine to zero in favor of keeping rates unchanged at a record low 0.5%, but the decision remained "finely balanced" for two officials.
The central bank said it still expects that inflation could turn negative in the next couple of months, having been flat in February and March.