Forex - EUR/USD trims losses but debt woes continue to weigh

Forex Pros – The euro trimmed losses against the U.S. dollar on Wednesday, but ongoing speculation over a potential restructuring of Greek sovereign debt weighed on expectations for further rate hikes by the European Central Bank this year.

EUR/USD pulled away from 1.4014, the daily low, to hit 1.4082 during early U.S. trade, down 0.11% on the day.

The pair was likely to find support at 1.3868, the low of March 17 and resistance at 1.4144, Mondays high.

Concerns over the regions debt crisis eased earlier in the day after Finland's parliament approved Portugal's EUR 78 billion bailout package from the European Union and International Monetary Fund. Finland's parliament, unlike others in the euro zone, has the right to vote on EU requests for bailout funds.

But Greek Finance Minister George Papaconstantinou has said Athens will not be able to honor its obligations if it did not obtain the next tranche of its bailout loans after the IMF's program assessment in June.

The euro was also lower against the pound, with EUR/GBP tumbling 0.77% to hit 0.8646.

Earlier Wednesday, government data showed that U.S. durable goods orders slumped in April, posting the biggest drop in six months.

The Commerce Department said durable goods orders dropped 3.6% after an upwardly revised 4.4% rise in March. Analysts had expected orders to decline 2.2% last month.




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