EURUSD Euro vs United States Dollar

The euro declined against its most major opponents in European trading on Wednesday, as European bonds yields fell after the Eurozone finance ministers cleared the way for fresh loans for Greece to avert debt default.

After the meeting in Brussels on Tuesday, Eurozone finance ministers reached the accord with Greece that paved the way for the disbursement of EUR 10.3 billion bailout fund.

The benchmark yield on 2-year German bonds fell 0.51 percent, while that of 10-year note was lower by 0.16 percent. Yields move inversely to prices.

German consumer confidence is set to strengthen in June, a monthly survey by research group GfK showed. The consumer sentiment indicator, based on a survey of around 2,000 Germans, rose to 9.8 from 9.7 in May. It was forecast to remain unchanged in June.

Meanwhile, the German Ifo Business Climate Index, which rates the current German business climate and measures expectations for the next six months, came in at 107.7 for May, up from 106.6 in April and beating forecasts for a score of 106.

The euro was trading mixed in Asian deals. While the euro held steady against the greenback and the franc, it rose against the pound and the yen.

The euro declined to 0.7582 against the pound, its weakest since February 3. On the downside, 0.74 is likely seen as the next support level for the euro-pound pair.

Reversing from an early high of 1.1158 against the greenback, the euro fell back to 1.1136. The euro is seen finding support around the 1.10 mark.

The 19-nation currency slid to more than a 3-week low of 1.6464 against the kiwi, compared to 1.6526 hit late New York Tuesday. Further weakness may take the euro to a support around the 1.63 level.

The euro dropped to a 9-day low of 1.1040 against the Swiss franc, off its early high of 1.1069. If the euro extends decline, it may find support around the 1.09 zone.

Survey data from the UBS investment bank showed that a measure of Swiss consumption increased again in April, largely driven by the positive trends in domestic tourism and new car registrations.

The UBS Consumption Indicator climbed to 1.47 points in April from 1.40 in the previous month, signalling solid performances in the automotive and tourism markets.

On the flip side, the euro held steady against the yen, following a 2-day high of 122.91 hit at 4:45 am ET. The pair finished Tuesday's trading at 122.53.

Looking ahead, U.S. advance goods trade balance for April, Markit's flash services PMI for May, FHFA house price index for March and U.S. crude oil inventories data are slated for release in the New York session.

At 9:00 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak on the economic outlook before the Forum on America's Economy 2016 in Philadelphia.

The Bank of Canada's interest rate decision is due at 10:00 am ET. The economists expect the bank to hold rates at 0.5 percent.

At 2:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in a moderated question-and-answer session before the Greater Houston Partnership Thought Leader Series.

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