Forex - EUR/USD holds modest gains as Greece vote eyed

Forex Pros – The euro edged higher against the U.S. dollar on Tuesday, amid expectations that euro zone officials will reach an agreement on emergency financing for Greece, but investors remained wary ahead of a confidence vote in the Greek parliament.

EUR/USD hit 1.4384 during late Asian trade, the pair’s highest since June 15; the pair subsequently consolidated at 1.4358, gaining 0.38%.

The pair was likely to find support at 1.4126, last Friday’s low and resistance at 1.4496, the high of June 14.

The euro found support after Klaus Regling, chief of the European Financial Stability Facility said Monday that the effective lending capacity of the bailout fund would be raised to EUR 780 billion from EUR440 billion.

But the single currency remained under pressure after Fitch Ratings said it would consider a Greek sovereign debt swap or a rollover of maturities, even on a voluntary basis, as a default.

The Greek government was to face a critical crucial confidence vote late in the day, ahead of a vote next week on an unpopular austerity plan.

The euro was also higher against the pound, with EUR/GBP rising 0.23% to hit 0.8848.

Also Tuesday, the ZEW Centre for Economic Research was to publish a report on German economic sentiment.

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