Investing.com- The euro extended gains against the U.S. dollar on Wednesday, advancing to a two-week high, lifted by a growing sense of optimism that Greece’s parliament would pass new austerity measures designed to prevent the country from defaulting on its debts.
EUR/USD hit 1.4448 during European early afternoon trade, the pair’s highest since June15; the pair subsequently consolidated at 1.4433, rising 0.43%.
The pair was likely to find support at 1.4236, Tuesday’s low and short-term resistance at 1.4496, the high of June 14.
Later Wednesday, Greece's parliament was due to vote on a national austerity plan, needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Ahead of the vote, one of three deputies from Prime Minister George Papandreou’s ruling Socialist party backtracked and said he would support the austerity plan.
Meanwhile, Greek central bank Governor and European Central Bank policymaker, George Provopoulos, warned that a 'no' vote would be "suicide" for Greece.
The shared currency was also boosted after European Central Bank President Jean-Claude Trichet said Tuesday that the bank was in “strong vigilance mode,” signaling a possible rate hike when the bank meets next week.
The euro was also higher against the pound, with EUR/GBP rising 0.20% to hit 0.8999.
Also Wednesday, the U.S. was to publish industry data on pending home sales.
EUR/USD hit 1.4448 during European early afternoon trade, the pair’s highest since June15; the pair subsequently consolidated at 1.4433, rising 0.43%.
The pair was likely to find support at 1.4236, Tuesday’s low and short-term resistance at 1.4496, the high of June 14.
Later Wednesday, Greece's parliament was due to vote on a national austerity plan, needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Ahead of the vote, one of three deputies from Prime Minister George Papandreou’s ruling Socialist party backtracked and said he would support the austerity plan.
Meanwhile, Greek central bank Governor and European Central Bank policymaker, George Provopoulos, warned that a 'no' vote would be "suicide" for Greece.
The shared currency was also boosted after European Central Bank President Jean-Claude Trichet said Tuesday that the bank was in “strong vigilance mode,” signaling a possible rate hike when the bank meets next week.
The euro was also higher against the pound, with EUR/GBP rising 0.20% to hit 0.8999.
Also Wednesday, the U.S. was to publish industry data on pending home sales.