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Forex News: Euro Unaffected by Greece Buyback Announcement

Benjamin Spier

Today’s European session hasn’t seen much Euro movement, as the EURUSD pair seems comfortable above the key 1.3000 line. The pair crossed above 1.3000 only a few hours after the start of the session and set a new monthly high at 1.3049.

There has been a lot of news and releases during the session, but with little affect on the single currency. Greece offered to buy back as much as 10-billion Euros of bonds issued in a restructuring earlier this year, as an attempt to cut its debt load. The government said they will buy back bonds in a so called Dutch auction, and the government is willing to pay an average maximum purchase price of 34.1% for bonds maturing from 2023 to 2042. Although yields on Greek 2023 bonds fell below 15% for the first time since the debt restructuring, the Euro did not see much change following the announcement.

Overnight we found out that Moody’s downgraded the ESM and EFSF bonds, but that didn’t stop the single currency rally.

In economic releases, the Euro-zone PMI for manufacturing confirmed an earlier estimate, and the UK PMI for manufacturing slightly disappointed expectations. Also in the UK, the Bank of England reported that so far 4.36 billion Pounds have been borrowed under the Funding for Lending Scheme.

EURUSD is currently trading around 1.3035, resistance could be provided by the 2-month high at 1.3139. Support could be provided at 1.3026, by the 76.4% retracement of the decline from October’s high to November’s low.

EURUSD Daily: December 3, 2012

Euro_Unaffected_by_Greece_Buyback_Announcement_body_eurusd_daily_chart.png, Forex News: Euro Unaffected by Greece Buyback Announcement

--- Written by Benjamin Spier, DailyFX Research

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