The euro rose on Tuesday on speculation eurozone officials could raise the effective lending capacity of the bloc's rescue fund and talk of increased Portuguese bond buying by the European Central Bank. The euro climbed near $1.30 in midday trading. Analysts cautioned it could easily resume its downward trend given nervousness over a heavy schedule of debt issuance by southern European countries this week.
The euro last traded up 0.2 percent at $1.2968, having risen as high as $1.2994 on trading platform EBS. Resistance is at its 200-day moving average of $1.3072 while support is around $1.2794, the 61.8 Fibonacci percent retracement of a June-to-November rally. The dollar rose 0.7 percent to 83.34 yen as recent optimism about the US economy helped lift bond yields.
Comments
Comments are closed for this article.