Dollar consolidates gains vs euro amid mounting Greece fears

NEW YORK (Forex News Now) – The dollar consolidated gains versus the euro in forex trading on Wednesday, amid mounting fears over the prospects of a plan to help Greece plug its gaping budget deficit.

In U.S. afternoon currency trading, EUR/USD struck 1.3358, an eight-day low. The currency pair later bounced back to 1.3392, down 0.32 percent on the day.

In a shock to the European foreign exchange trading session, earlier Wednesday Reuters quoted Germany’s main opposition party as threatening to block plans to speed up parliamentary approval of aid for debt-ridden Greece.

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FX traders offering key FX news, meanwhile, say the euro is likely to touch support against the greenback around the low of March 25, 1.3267, and encounter resistance around the high of March 17, 1.3818.

Thursday’s currency trading news is likely to be dominated by the release of important reports on U.S. unemployment and producer price inflation. Britain is also set to make forex news, with the publication of data on its retail sector and public spending.

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