By Forex Yard – The euro continued to decline during the European trading session despite new meetings between Greek government leaders, the EU, and the IMF. The pound was also trading lower following poor monthly retail sales numbers.
The EUR/USD fell to 1.3300 from an opening day price of 1.3387. This comes after the spread on Greek government bonds rose to a record high against German bunds. German bunds are considered to be Europe’s best measurement of risk. Traders have also been eyeing Portugal government debt as the bond’s spreads have also jumped to uncharacteristic high levels against the bund.
The pound was unable to hold its earlier gains following weaker than expected British monthly retail sales data. Retail sales for the month of March fell by 0.4% on market expectations of a 0.7% rise. As such the GBP/USD fell to 1.5374 from 1.5425.
This afternoon is flooded with U.S. data releases. At 12:30 GMT U.S. PPI and weekly unemployment claims are set to be released, along with existing home sales data at 14:00GMT. Positive data for the U.S. economy may help to extend the dollar’s gains into the New York trading session. The EUR/USD has found support at the 1.3330 price level. The next major support level for the pair rests at 1.3280, the bottom of this month’s earlier consolidation pattern.
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