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Oct 05, 2011, 01.03 PM IST
Forex - EUR/USD trims losses on bank aid hopes
Forexpros - The euro trimmed losses against the U.S. dollar on Wednesday, pulling back from the daily low amid speculation that European Union leaders are discussing measures to recapitalize the region's banks.
EUR/USD pulled away from 1.3260, the daily low, to hit 1.3319 during late Asian trade, still down 0.23% on the day.
The pair was likely to find support at 1.3144, Tuesday's low and an eight-and-a-half month low and resistance at 1.3600, the high of September 30.
The euro found support after a report in the Financial Times said that E.U. finance ministers are looking into ways to coordinate the recapitalization of European lenders after agreeing that additional measures are needed support the region's banks.
The report came as concerns over a default by Greece mounted after a decision on the country's next tranche of aid was delayed until mid-November, while euro zone finance ministers examine ways to make banks take bigger losses on their holdings of Greek debt.
On Tuesday, Federal Reserve Chairman Ben Bernanke said the financial crisis in the euro zone was weighing on the U.S. economy and reiterated that the central bank was ready to do more to support the U.S. economic recovery.
Meanwhile, the euro was higher against the pound, with EUR/GBP rising 0.12% to hit 0.8630.
Later in the day, the euro zone was to publish revised data on second quarter GDP, as well as official data on retail sales. Elsewhere, the U.S. was to release a report on ADP non-farm payrolls, while the ISM was to produce a report on service sector activity.
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