Investing.com – The euro trimmed steep losses against the U.S. dollar on Tuesday, amid speculation that the European Central Bank stepped in to buy euro zone debt, while European Union leaders prepared to hold an emergency summit on Friday.
EUR/USD clawed back up from 1.3838 the pair’s lowest since March 11, to hit 1.3990 during early U.S. trade, still down 0.28% on the day.
The pair was likely to find support at 1.3751, the low of March 11 and resistance at 1.4061, the days high.
Earlier in the day, Italy auctioned the targeted amount of EUR6.75 billion of 12-month Treasury bills but bond yields rose to 3.6%, their highest level since September 2008.
Meanwhile, Reuters reported that EU leaders are preparing to hold an emergency summit meeting on Friday after finance ministers acknowledged that some form of Greek default may be necessary in order to put the country’s debt on a more sustainable footing and prevent contagion to Italy and Spain.
The euro tumbled to a four-month low against the greenback earlier Tuesday after International Monetary Fund Chairwoman Christine Lagarde said the institution was not ready to discuss the terms of a second bailout package for Greece.
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8810.
Later in the day, the Federal Reserve was to publish the minutes of its June policy-setting meeting.
EUR/USD clawed back up from 1.3838 the pair’s lowest since March 11, to hit 1.3990 during early U.S. trade, still down 0.28% on the day.
The pair was likely to find support at 1.3751, the low of March 11 and resistance at 1.4061, the days high.
Earlier in the day, Italy auctioned the targeted amount of EUR6.75 billion of 12-month Treasury bills but bond yields rose to 3.6%, their highest level since September 2008.
Meanwhile, Reuters reported that EU leaders are preparing to hold an emergency summit meeting on Friday after finance ministers acknowledged that some form of Greek default may be necessary in order to put the country’s debt on a more sustainable footing and prevent contagion to Italy and Spain.
The euro tumbled to a four-month low against the greenback earlier Tuesday after International Monetary Fund Chairwoman Christine Lagarde said the institution was not ready to discuss the terms of a second bailout package for Greece.
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8810.
Later in the day, the Federal Reserve was to publish the minutes of its June policy-setting meeting.