The euro erased gains against the U.S. dollar on Wednesday, after upbeat U.S. home sales data and as concerns over Greece's debt woes
continued to undermine demand for the single currency.
EUR/USD retreated from 1.0799, the pair's highest since April 20, to hit 1.0723 during U.S. morning trade, losing 0.13%. The pair was likely to find support at 1.0622, the low of April 16 and resistance at 1.0850, the high of April 17.
Existing home sales rose 6.1% last month to 5.19 million units from a revised total units of 4.89 million while analysts had expected existing home sales to rise 3.0% in March, the U.S. National Association of Realtors.
However, the dollar's gains were limited, as market players pushed back expectations for higher U.S. interest rates after a recent series of weak economic data.
In the meantime, the euro remained fragile as Athens was no closer to reaching an agreement with its euro zone partners and the International Monetary Fund over economic reforms required to access remaining bailout funds, fuelling fears that the country could be forced out of the euro zone.
As Bloomberg said Tuesday, the European Central Bank is
considering tighter rules on Greek banks in return for emergency
liquidity, adding to Greece's woes.
The euro was also lower against the pound, with EUR/GBP declining 0.72% to 0.7140.
