Forex - EUR/USD pushes higher on Greece deal hopes

Forexpros - The euro pushed higher against the U.S. dollar on Tuesday, boosted by hopes that negotiators were close to reaching an agreement on a debt restructuring deal to help Greece avert a default.

EUR/USD hit 1.3199 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3176, gaining 0.25%.

The pair was likely to find support at 1.3076, Monday’s low and resistance at 1.3226, Monday’s high and a six-week high.

Speaking at a European Union summit in Brussels, Greek Prime Minister Lucas Papademos said "significant progress” had been made in debt-swap talks with the country’s private creditors, boosting hopes that a deal can be finalized before the end of the week.

Meanwhile, EU leaders agreed on its fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone.

In a statement following the summit, EU leaders noted "tentative signs" of economic stabilization in the region, but said financial market tensions continue to weigh on the economy.

The euro was almost unchanged earlier, after official data showed that German retail sales fell unexpectedly in December, declining for the third consecutive month.

The euro was also higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8372.

Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country is also to publish a report on consumer confidence.