FXstreet.com (Córdoba) - Bad news continued to flow from Spain pressuring the shared currency just ahead of the weekend, with latest headlines saying that the troubled Bankia will receive capital injections "immediately" from the Spanish bank rescue fund, even before the euro zone money arrives.
EUR/USD failed to sustain Bernanke's propelled gains above the 1.2600 mark and eased toward a NY session low of 1.2557 as stocks also surrendered some gains in Wall Street. At time of writing, EUR/USD is trading at the 1.2575 area, still 0.5% above its opening price.
"In Europe, the IMF-ECB-EU troika returns to Greece on Wednesday. Recent meetings between Greek Prime Minister Samaras with German Chancellor Merkel and French President Hollande suggest that the tail risk of Greek exit has receded", says the UBS analyst team. "The ECB meeting on Thursday should result in a 25bps rate cut. ECB President Draghi is also expected to elaborate on the conditionality attached to reactivating its Securities Market Program. A lack of clarity on this issue would likely pressure the euro".
In terms of technical levels, the Talking-Forex.com team sees supports at 1.2565/60 and then at 1.2493. On the other hand, resistance levels are seen at 1.2638/63 and then at 1.2693.
EUR/USD failed to sustain Bernanke's propelled gains above the 1.2600 mark and eased toward a NY session low of 1.2557 as stocks also surrendered some gains in Wall Street. At time of writing, EUR/USD is trading at the 1.2575 area, still 0.5% above its opening price.
"In Europe, the IMF-ECB-EU troika returns to Greece on Wednesday. Recent meetings between Greek Prime Minister Samaras with German Chancellor Merkel and French President Hollande suggest that the tail risk of Greek exit has receded", says the UBS analyst team. "The ECB meeting on Thursday should result in a 25bps rate cut. ECB President Draghi is also expected to elaborate on the conditionality attached to reactivating its Securities Market Program. A lack of clarity on this issue would likely pressure the euro".
In terms of technical levels, the Talking-Forex.com team sees supports at 1.2565/60 and then at 1.2493. On the other hand, resistance levels are seen at 1.2638/63 and then at 1.2693.
