Forexpros – The euro fell to a seven-week low against the U.S. dollar on Tuesday, as concerns that the debt crisis in the single currency bloc is deepening saw investors shun riskier assets.
EUR/USD hit 1.4039 during late Asian trade, the pair’s lowest since July 18; the pair subsequently consolidated at 1.4060, shedding 0.26%.
The pair was likely to find support at 1.3950, the low of July 13 and resistance at 1.4172, Monday’s high.
The euro came under pressure as uncertainty over the implementation of an Italian austerity package saw the cost of insuring Italian sovereign debt against default rise above that of Spain for the first time since December 2009 on Monday.
Meanwhile, talks between Greece and officials from the European Union and the International Monetary Fund on the next tranche of aid stalled on Friday after Athens failed to meet deficit reduction targets.
The euro edged higher against the pound, with EUR/GBP inching up 0.03% to hit 0.8747.
Later in the day, finance ministers from Germany, the Netherlands and Finland were to meet to discuss the issue of collateral for loans to Greece. In addition, the euro zone was to produce revised data on second quarter gross domestic product, while Germany was to release official data on factory orders.
Also Tuesday, the Institute of Supply Management was to produce a report on U.S. service sector activity.
Forexpros
