Forexpros – bsp;Forexpros – The euro remained sharply lower against the U.S. dollar at the close of Asian trade Friday. Positive word from the summit, that German Chancellor Angela Merkel is creating a “new fiscal union” for euro stability, did little to stem the extreme bearishness.
EUR/USD hit a low of 1.3311 during Asian trade and ended the session at 1.3325.
The pair was likely to find support at 1.3294 and technical resistance exists at 1.3351.
Angela Merkel stated at the European Union summit, per Bloomberg, “We will create a new fiscal union for the euro that is a stability union by creating a “debt brake” for all euro countries and all countries that want to join up.”
Meanwhile, European leaders added 200 billion euros to their crisis fund and ramped up anti – deficit rules in an attempt to push the European Central Bank into becoming more aggressive with its rescue programs.
In addition, European officials are planning a “fiscal compact”, advanced the start of a 500 billion euro crisis fund, and lowered bondholder loss sharing provisions.
The euro was also lower against the pound, with EUR/GPB giving back 0.18% to 0.8535.
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