Euro struggles to hold gains vs USD, faces tech resistance
The euro struggled to hold gains against the dollar on Wednesday after its failure to break above a key technical level prompted profit taking, keeping the single currency in a near-term range. Higher shares and commodity prices offered some support to riskier currencies including the euro, while the dollar was on the back foot as lower U.S. Treasury yields tarnished the appeal of U.S. assets. At the same time, the euro's upside was capped after European finance officials on Tuesday acknowledged that Greece may have to restructure its debts, which raised speculation that Europe's sovereign debt crisis may worsen. "If Greece is allowed to restructure in one way or another, it could be taken as a negative for the euro as it could undermine confidence in the euro zone," said Dag Muller, strategist at SEB in Stockholm. "In the short-term, this uncertainty will make investors question whether they should still hold their long positions in the euro." more
