The European currency remained under selling pressure Wednesday amid continued uncertainty over Euro-Zone debt problems. The EUR was trading around $1.2650, down 0.2% from Tuesday, having retreated from Monday's high near $1.3100.
The European single currency rebounded vs. the USD in mid-day trading Wednesday, reversing early losses as Euro-Zone peripheral government bond yields dropped, partly easing debt concerns and, as data has shown, the economy grew modestly in the 1st quarter.
Still, the EUR's gains lacked the momentum to push it beyond the $1.31 level touched after the debt aid was announced on Monday. Since the U.S. economy is doing better than the rest of the Euro-Zone economies, the U.S currency may continue to outperform. The market's sentiment remains extremely bearish for the EUR and the single currency is likely to resume its declines back to $1.25 within days.